Toncoin’s price has remained stable between $5.96 and $5.37, with little impact from the broader market. Despite the potential for a breakout from this range, technical indicators point to the opposite.

With Toncoin still fluctuating within this range, the likelihood of a correction is high. Despite the recent slight increase in price, a deeper analysis of technical indicators paints a different picture.

Toncoin is at Risk of a Price Drop

Toncoin’s long-term (LTH) investors have shown strong confidence by holding onto the asset without many transactions over the past month. This is further reinforced by the increase in Mean Coin Age (MCA), a measure of how long a coin has been in the same wallet. An increase in MCA typically indicates greater confidence from investors, as they decide not to sell despite market volatility.

However, Toncoin’s history shows that the rise in Mean Coin Age (MCA) has often preceded price declines. The lack of activity among long-term investors could be a sign of weakening market momentum, a familiar signal for price corrections. If this trend continues, the likelihood of a repeat of previous price declines is high, making Toncoin vulnerable to a correction in the near term.

In terms of the macro landscape, technical indicators are warning of a potential downturn for Toncoin. The Moving Average Convergence Divergence (MACD) indicator is approaching a double top divergence, which is often a sign of an impending reversal. This pattern, combined with the price making higher highs, suggests that the upward momentum may be slowing down.

A test of the $5.96 resistance level will be crucial to confirm this double top pattern. If Toncoin fails to break above this level, the bearish trend will be further reinforced. The divergence between the price action and the MACD indicator further increases the possibility of a correction in the coming days, with the risk of a sharp decline increasing.