- Toncoin is likely to fall closer to $5.
- The on-chain metrics gave a buy signal but conditions might be too risky to rely on them.
As a seasoned crypto investor with over a decade of experience in this volatile market, I have learned to read between the lines when it comes to price predictions and market trends. While Toncoin [TON] has shown a bearish trajectory and is currently trading below $6, I find myself cautiously optimistic about its future price action.
According to our previous forecast, Toncoin (TON) continued on a downward trend and dropped below $6. Technical analysis suggested heavy selling activity. However, Fibonacci retracement levels could potentially support a bullish recovery.
In the vicinity of $60,000, Bitcoin [BTC] seems to be facing challenges, and the overall cryptocurrency market does not appear optimistic in the immediate future. A potential rebound aimed at short sellers’ liquidation points could transpire on Monday, but a further downtrend may follow afterward.
The $5.8 and $5.36 levels under scrutiny
In simpler terms, the market’s overall trend remained downward today. There was a noticeable space between the current prices and their estimated values around $6.5. Any attempt to increase the price might encounter resistance at this level because it could trigger liquidation of some positions.
During July, the Moving Average Convergence Divergence (MACD) exhibited a continuous decline, while the Chaikin Money Flow (CMF) dropped to a four-month minimum. This indicated intense selling pressure and persistent bearish trends for TON since its rejection at $7.7.
Next week, there’s a possibility we could revisit the 78.6% pullback point, priced at around $5.36. Swing traders are optimistic that this could mark the end of the downward trend and present a chance for them to buy, hoping for an upturn in the market.
Should traders wait for further price drops, or buy TON right away?
Regardless of the recent decrease in prices, there’s been an upward trend in the average age of coins within the network, suggesting that users are buying and holding onto them more, indicating accumulation.
Currently, the MVRV ratio has dropped to levels comparable to early May, indicating that short-term holders have suffered significant losses. This could potentially mean that the token is currently underpriced.
Is your portfolio green? Check the Toncoin Profit Calculator
Over the past period, the overall public sentiment regarding this subject was predominantly optimistic, reinforcing confidence. This optimism suggested that investors might find a solid basis in the $5.86 price point, which represents a significant support level, as well as the 61.8% retracement level. However, investing at these levels may carry some potential risks.
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2024-08-05 03:03