TON Price Dynamics: Concerns Behind the Moderate Rise
In the past few weeks, Toncoin [TON] seems to have sunk into a price quagmire, wavering within the narrow range of $5.1 to $5.5. At that time, many altcoins appeared to be riding the momentum of Bitcoin, skyrocketing to recent highs, while TON's increase seemed so tepid. As of the writing of this article, Toncoin has struggled to climb to $5.55, having achieved a 1.83% increase in the past day, and both the weekly and monthly charts show upward trends, recording increases of 4.91% and 6.85% respectively. However, compared to the historical high of $8.24, there remains a gap as high as 32.84%. This scenario casts an overall market sentiment under a cloud, with bearish voices ringing in the air.
Chart Signals: Sell Pressure and Indicator Warnings
From the chart analysis of TON, AMBCrypto's analysis reveals that it is experiencing overwhelming sell pressure amid bearish sentiment in the bull market. This pressure is like a surging tide, visibly reflected in the sharp increase of funds flowing into exchanges. According to IntoTheBlock data, in the past 24 hours, the inflow of funds into exchanges skyrocketed by 37.54%, jumping from a low of $34.05 million to $48.69 million. When funds flood into exchanges like a tide, it reflects the investors' inner fear and lack of confidence, as they rush to liquidate assets either to maximize profits or to minimize losses. Additionally, Toncoin's Stoch RSI indicator recently showed a bearish crossover, sounding an alarm, indicating that sellers have emerged like a fierce tiger, taking control of market dominance. During this period, the index plummeted from 85 to 39 as if in free fall.
Key Price Levels: The Tug of War Between Support and Resistance
If this bearish sentiment continues to spread, like a biting winter wind howling through, TON is very likely to slide to $5.2, a price point that serves as a strong support. Conversely, if buyers' recent efforts yield fruitful results, this altcoin may break out of its consolidation range like a butterfly emerging from its cocoon, heading towards the peak of $6.6, where significant resistance awaits it. Further investigation reveals that Toncoin's Stock-to-Flow Ratio (SFR) has plummeted from 44.28 to 0 in the past week, akin to a high dive. This dramatic drop in SFR undoubtedly warns everyone that the altcoin is deeply trapped in an oversupply quagmire. In the context of weak and powerless demand, the continuous increase in supply is like a raging flood, usually mercilessly dragging down prices.
Market Situation: Buyer Hesitation and Seller Dominance
Although TON is struggling to rise on the price chart, its long-legged doji on the daily chart reflects the indecision of buyers. The daily candlestick chart closing with a long-legged doji resembles a silent contest, indicating that sellers and buyers are fiercely vying for market dominance. However, the market's balance seems to be gradually tilting towards the sellers, and the bearish crossover of the Relative Vitality Index (RVGI) four days ago is strong evidence of this trend.
The information provided in this article is for reference only and does not constitute any type of advice.
