In the past 24 hours, the price of Toncoin (TON) has increased by over 7%, showing signs of recovery as its market capitalization approaches $16 billion. After the RSI fell to an oversold level of 18, TON has rebounded to 47, indicating its potential for continued growth.

Furthermore, the supply of TON on exchanges decreased from 1.91 million to 1.85 million in the last day, indicating reduced selling pressure. Although the EMA lines recently formed a death cross, short-term indicators suggest that if momentum continues, a reversal may occur, allowing TON to test key resistance levels around and above $7.

TON RSI recovers from oversold territory

The relative strength index (RSI) of Toncoin has rebounded significantly to 47, after dipping to a low of 18 between December 9 and 10. This trend indicates a recovery from extreme oversold conditions, which usually precedes a price rebound.

The price of TON has risen by over 7% in the past 24 hours, reflecting renewed buying interest after the RSI approached neutral territory. This upward momentum suggests that as long as buying pressure persists, the price of TON may continue to rise.

RSI is a momentum oscillator that ranges from 0 to 100, used to measure the speed and magnitude of price movements. A reading below 30 indicates oversold conditions, suggesting a potential reversal, while a reading above 70 indicates overbought conditions and the possibility of a pullback.

The RSI of TON is currently at 47, having moved out of the oversold area and approaching neutral territory. This level suggests that the current upward trend may have greater room for growth, as TON still has space before reaching overbought levels.

The supply of Toncoin on exchanges has decreased to 1.85 million.

The supply of Toncoin on exchanges has been steadily increasing since December 3, when it was at 1.71 million, now at 1.85 million. This trend suggests that as more tokens enter exchanges, selling pressure is increasing, which is usually a bearish signal indicating that holders may be preparing to sell.

However, in the past 24 hours, the supply of TON on exchanges decreased from 1.91 million to 1.85 million, indicating a potential shift in market sentiment. This decline may suggest that users are withdrawing tokens from exchanges, possibly for long-term holding or staking.

Supply of TON on exchanges. Source: Santiment

Changes in the supply of tokens on and off exchanges are key indicators of market sentiment. An increase in exchange supply often precedes selling activity, putting downward pressure on prices. Conversely, a decrease in exchange supply indicates that users are moving tokens to private wallets, which can alleviate immediate selling pressure and support bullish momentum.
Although the recent decrease in exchange TON supply is encouraging, it is essential to monitor whether this trend continues, as sustained declines may indicate stronger confidence in a price recovery for the token.

Can TON break through $7 again in December?

Toncoin Exponential Moving Average (EMA) line formed a death cross yesterday, with the short-term EMA below the long-term EMA, indicating a bearish trend.

Nevertheless, the price of TON has since shown signs of recovery, with the short-term EMA starting to turn upwards. This indicates that although there are bearish signals, a reversal remains possible if momentum continues to strengthen, making Toncoin one of the most worthwhile altcoins to invest in for December.

If the downtrend continues, the price of TON may test the support level at $5.68. A break below this level could lead to further declines, with a target potentially at $5.19. However, as the RSI indicates, there is still room for an upward move.

TON can leverage this rebound to challenge the resistance level at $6.3. If it successfully breaks through this level, further targets include $6.6 and $6.99, the latter of which has been a strong resistance level in recent days.

In summary

The price of Toncoin has risen over 7%, rebounding from oversold RSI levels, with a market capitalization approaching $16 billion.

The exchange supply decreased from 1.91 million to 1.85 million, indicating reduced selling pressure and a potential shift in sentiment.

Since TON's goal is to test resistance at $6.3 and above, the mixed EMA signals indicate potential for recovery.