The price of Toncoin (TON) has increased over 7% in the past 24 hours, showing signs of recovery as it approaches a market capitalization of $16 billion. After reaching an oversold level with an RSI low of 18, it has recovered to 47, suggesting continued growth potential.
Additionally, the supply of TON on exchanges has decreased from 1.91 million to 1.85 million in the past day, signaling a reduction in selling pressure. Although the EMA has recently formed a death cross, short-term indicators are suggesting a potential reversal if the upward momentum is maintained, helping TON test important resistance levels near $6.3 and above.
TON's RSI has recovered from the oversold region
The relative strength index (RSI) of Toncoin has significantly recovered, now at 47 after falling to a low of 18 around December 9 and 10. This movement marks a recovery from deeply oversold conditions, often preceding a price increase.
The price of TON has risen over 7% in the past 24 hours, reflecting new buying interest as the RSI approaches the neutral zone. This upward momentum suggests that the price of TON could continue to rise if buying pressure is maintained.
TON's RSI | Source: TradingView
RSI is a momentum indicator that oscillates between 0 and 100, measuring the speed and strength of price movements. Levels below 30 indicate oversold conditions, signaling a potential reversal, while levels above 70 indicate overbought conditions and the potential for price corrections.
With TON's RSI currently at 47, this indicator has escaped the overbought zone and is approaching the neutral threshold. This suggests that the current price increase may continue, as TON has not reached the overbought level.
The supply of Toncoin on exchanges has steadily increased from 1.71 million on December 3 to 1.91 million TON on December 11. This trend indicates increasing selling pressure as more tokens are moved to exchanges, often a bearish signal as investors prepare to sell.
Toncoin supply on exchanges | Source: Santiment
However, in the past 24 hours, the supply of TON on exchanges has decreased to 1.85 million, signaling a potential shift in market sentiment. This decrease indicates that users are withdrawing tokens from exchanges, possibly for long-term holding or staking.
The movement of a coin's supply in and out of exchanges is an important indicator of market sentiment. An increase in supply on exchanges often precedes selling activity, putting downward pressure. Conversely, a decrease in supply on exchanges indicates that users are transferring tokens to private wallets, which may alleviate immediate selling pressure and support price increases.
While the recent decrease in TON supply on exchanges is a positive signal, it is important to continue monitoring whether this trend is sustained, as a continuous decline may indicate stronger confidence in TON's price recovery potential.
TON price forecast: Can it conquer $7 in December?
The EMA lines of Toncoin formed a death cross yesterday, as short-term EMAs crossed below long-term EMAs, signaling a downtrend.
Nonetheless, the price of TON has shown signs of recovery, with short-term EMAs starting to trend upwards. This suggests that while bearish signals still exist, the potential for a reversal is there if the upward momentum continues, making Toncoin one of the altcoins worth investing in this December.
If the downward trend persists, the price of TON may test the support level at $5.68. Breaking below this level could lead to further declines, with a potential target of $5.19. However, as indicated by the RSI, there is still room for growth.
TON/USDT 4-hour chart | Source: TradingView
TON can take advantage of this recovery phase to challenge the resistance level at $6.3. If it surpasses this level, the next targets will be $6.6 and $6.99, with $6.99 having acted as a strong barrier in recent days.