Toncoin (TON) is facing significant challenges amid a significant increase in exchange flows and intensifying selling pressure. Despite a daily price increase of 1.83%, Toncoin is struggling to break out of its trading range of $5.1 to $5.5.
IntoTheBlock’s latest report states that “Increase in flows indicates low investor confidence.” With exchange flows increasing by 37.54%, selling pressure on Toncoin has increased, while market sentiment is still moving in a negative direction despite showing gains in the short term.
Market Dynamics: Toncoin’s Struggle
According to the latest data, Toncoin has been stuck between $5.1 and $5.5 for several weeks now. Broad market trends suggest that alternative cryptocurrencies are benefiting from Bitcoin’s momentum, but Toncoin is still holding the cold despite its 1.83% daily gain. While weekly and monthly performances are up 4.91% and 6.85% respectively, Toncoin’s current price is still 32.84% lower than its all-time high of $8.24.
Analysis and Effects of Flow Increase
COINOTAG analysts point to the 37.54% increase in exchange flow as a critical indicator. The flow increased from $34.05 million to $48.69 million, which could be a sign of selling pressure that could affect Toncoin’s price stability. Traders should pay close attention to this situation.
Technical Indicators and Future Projections
From a technical perspective, Toncoin’s Stochastic RSI recently dropped from 85 to 39, reinforcing concerns that selling pressure will continue. Furthermore, the Stock-to-Flow Ratio (SFR) dropped from 44.28 to 0 in a week, indicating supply is starting to outstrip demand and oversupply issues. This suggests that market confidence is waning and Toncoin’s perceived value is at risk of falling.
Future for Toncoin
Despite the small gains, a long-bodied doji has formed on the daily candlestick chart, suggesting that investor sentiment is divided and hinting at a fragile balance in market dynamics. For now, sellers seem to have the upper hand over buyers, which is further reinforced by the negative crossover detected in the Relative Energy Index (RVGI) four days ago.
Traders focused on Toncoin should keep a close eye on two key price levels: A potential drop appears near the $5.2 level, which is important to watch as there is strong support at this level. On the other hand, if bullish momentum emerges, there is a possibility that it could rally to $6.6, in which case Toncoin could break out of a significant resistance level.
How is your portfolio affected by these market changes? We recommend that you evaluate your positions with our TON Profit Calculator to develop a strategy amidst market fluctuations.
