#Toncoin (TON) has been facing serious bearish pressure lately, which has been preventing the token rate from starting to rise. However, some indicators are hinting that the trend could change soon enough
Let's find out what is happening with Toncoin ($TON
) and whether the token has enough strength to recover.
Toncoin is at the mercy of the bears
The Relative Strength Index (RSI) for Toncoin is now at 29.69. Over the past few days, values have risen from a low of 26. That said, all values below 30 indicate that the cryptocurrency is in an oversold zone.
This change could signal that the cryptocurrency is ready to launch a recovery. Often, #RSI values below 30 also indicate that the asset is undervalued. This could be the point from which the price will rebound.
Meanwhile, traders have transferred about 30 thousand TON to crypto exchanges in recent days. Usually, such mass movements of coins foreshadow possible sales. Therefore, the withdrawal of cryptocurrencies to trading floors is traditionally considered a bearish signal.
However, the volume of new tokens on exchanges can not be called critical. Even in the case of a sell-off, this factor is unlikely to put serious pressure on the Toncoin exchange rate.
Toncoin forecast: reverse the trend
At the time of writing this analysis, Toncoin is trading at $4.60, having shed more than 5% over the last 24 hours.
Analyzing the EMA lines for the cryptocurrency allows us to conclude that the downtrend will continue in the near future. The chart below shows that the price of TON is under all EMA lines; also short-term lines are located under long-term ones. This picture indicates a strong bearish trend and the dominance of sellers.
If the trend does not reverse, the altcoin is at risk of falling to $4.45. At this level there is support, which can help the price to stabilize.
However, if the market's interest in TON increases, the cryptocurrency will have a chance to test resistance at $4.91.