Toncoin (TON) price recently failed to break above the crucial $6 resistance level, a key psychological barrier. Although the altcoin reached $5.96, it failed to sustain the momentum needed to turn that level into support.

However, despite this setback, the possibility of recovery remains, with Toncoin still holding the potential for upward movement.

Toncoin has a chance

Macro momentum for Toncoin has started to show signs of weakness. The Moving Average Convergence Divergence (MACD) indicator, widely used to assess the rise of coins, suggests that the bullish momentum is fading. The decreasing green bars on the histogram point to this loss of momentum, indicating a weakening of the uptrend.

However, this does not indicate a complete reversal. As long as the MACD remains above the neutral line, there is no definitive bearish signal. A drop below the neutral zone would confirm a bearish shift, but for now, Toncoin remains in a vulnerable yet indecisive state.

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MACD do Toncoin. Fonte: TradingView

However, Toncoin’s market sentiment has improved, especially as the dominance of short-term investors has diminished. These investors, who typically hold assets for less than a month, tend to sell quickly, often adding volatility to the price. Thus, in the last ten days, the share of these investors has fallen from 26% to 15%, a considerable drop of 11%.

This shift is crucial, as values ​​above 25% usually signal potential bearish pressure. With fewer short-term holders, the risk of a quick sell-off decreases, stabilizing Toncoin’s price and reducing the likelihood of an immediate downturn.

Toncoin Supply Distribution. Source: IntoTheBlock

TON forecast

Toncoin is currently trading at $5.81, having recently failed to break above the resistance at $5.96. This resistance is crucial for the cryptocurrency, as overcoming it would pave the way for an attempt to cross the $6 mark, a level that remains elusive.

Despite the failed breakout, Toncoin still has a chance to flip $5.96 into support. If successful, this could trigger a rally that would propel the crypto higher, with $6.36 the next target for bullish investors.

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Toncoin Price Analysis. Source: TradingView

However, if Toncoin fails to break above $5.96 again and the bullish momentum continues to wane, the asset could enter a consolidation phase. This could result in Toncoin trading between $5.37 and $5.96, potentially invalidating the current bullish outlook.

The article Toncoin Price Loses Bullish Momentum – What’s Next? appeared first on BeInCrypto.