2 Reasons Why TON Price May Struggle To Reach $10

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As a seasoned crypto investor with battle-tested nerves and a portfolio that mirrors a rollercoaster ride, I find myself intrigued by the recent surge of Toncoin (TON) price approaching $6.25. Having witnessed numerous market upheavals, I can’t help but feel a mix of excitement and caution as this bullish momentum unfolds.

The cost of TON is moving towards $6, having held its ground at $5, suggesting a new wave of bullish energy driven primarily by Ethereum (ETH), Solana (SOL), and Ripple (XRP). This positive resurgence in the price of TON observed over the past 24 hours comes after a prolonged sell-off during the weekend that extended into Monday, as global markets experienced a significant downturn.

Investors might seek chances to acquire TON, anticipating a lasting recovery and surpassing the previous peak of $10. Yet, given the ongoing market turbulence, it’s wise to explore various possibilities, such as a limited surge in price due to resistance at approximately $6.25.

    TON Price Comeback Nears $6.25 Hurdle

As an analyst, I’ve noticed a significant trend in Toncoin‘s market based on blockchain data from IntoTheBlock. Specifically, around 475 investors collectively bought roughly 129,000 Toncoins at prices between $5 and $5.17. This substantial purchase has bolstered Toncoin’s support at the $5 price level. This influx of buying activity provided a strong foundation for the bulls to regroup and capitalize on the available liquidity, propelling the ongoing recovery of TON.

According to the present trend, Toncoin might surpass $6 in the upcoming American trading hours due to buyers stepping in when the price is dipping over the $5 barrier. Yet, the IOMAP model indicates a significant resistance level at approximately $6.25.

Approximately 1,060 addresses holding about 1.64 million TON might cause a downward trend if they choose to sell at their break-even point. This increased selling could restrict the bulls from maintaining the upward momentum, potentially causing TON’s price to revisit the $5 support level due to the heightened selling pressure.

2 Reasons Why TON Price May Struggle To Reach $10

2. Stagnant Network Activity Undermines Toncoin’s Recovery

In the past 30 days, there hasn’t been much change in the network activity of Toncoin, as both new and active addresses remain relatively stable. However, data from the ‘Addresses’ metric shows a noticeable decrease, dropping to 194 on Monday, compared to 398 addresses seen during the first week of July.

In this period, active addresses dropped slightly from 733 to 532, suggesting that the network may lack sufficient bullish energy to continue pushing the TON price upward.

2 Reasons Why TON Price May Struggle To Reach $10

Toncoin Technical Indicators Signal Buy

Regardless of the low transaction volume on the blockchain, the price of TON has rebounded and is now hovering above its 200-day Exponential Moving Average (EMA), which stands at $5.16 in a daily context. The shift in the Money Flow Index (MFI) towards the neutral zone indicates an increasing bullish sentiment among traders, suggesting that they are becoming more willing to invest in Toncoin.

Traders might prefer taking long positions if Toncoin tests and recovers from its 200-day short-term support level. Beyond that, TON is expected to surpass resistance at around $6 – $6.25, fueling a renewed rally aiming for $8 and potentially reaching a new peak of $10.

2 Reasons Why TON Price May Struggle To Reach $10

If the price doesn’t surpass the $6 mark, it might slow down the bullish momentum towards $10. This could lead traders to sell at the first opportunity for profit, hoping to buy back at the $5 support level. The formation of a “death cross” on July 25, where the 20-day Exponential Moving Average (EMA) dipped below the 50-day EMA, might intensify the ongoing price drop within the range of $3.5 to $4.

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2024-08-06 22:12