Toncoin (TON) recently saw a noticeable price decline, falling below its 100-day straightforward moving average (SMA). This breach of a critical technical indicator put pressure on the digital asset, raising concerns among investors and traders. With the $6 level now a potential target, there is market speculation on whether the price will continue to decline or if there might be a rebound.
This article aims to inform readers about the potential implications of Toncoin’s recent technical breach by conducting an in-depth analysis of its market performance, with a focus on the price falling below the 100-day SMA. It also assesses possible scenarios for TON’s future price developments, examining whether the digital asset will continue to decline towards the $6 level or an inevitable rebound could occur.
At the time of writing, Toncoin is trading at around $6.75, up 2%, with a market capitalization of over $16 billion and trading volume of over $220 million. Over the past 24 hours, TON’s market capitalization is up 2.01%, while trading volume is down 14.75%.
Breakout Below 100-Day SMA: Technical Analysis
After successfully breaking above the 100-day straightforward moving average (SMA), TON price on the 4-hour chart is currently in a short-term bullish correction, highlighted by a series of bullish candles. It should be noted, however, that cryptocurrency It could eventually fall towards the $6 support level as it continues to trade below the 100-day SMA.
Although the Relative Strength Index (RSI) signal line on the 4-hour chart is attempting to rise, it is still below the 50% level. This suggests that the current uptrend may be short-lived as the momentum may change from bullish to bearish. bearishwhich could potentially push the price towards the support level of USD 6.
On the 1-day chart, Toncoin is attempting to retest the 100-day SMA, forming a single bullish candle after breaking below it. Following this retest, the crypto asset could resume its downward move towards the support at $6.
Finally, you can see that the 1-day RSI signal line has crossed below the 50% level and is currently moving towards the oversold zone. This RSI setup indicates a potential change in momentum from bullish to bearish for the TON price.
Conclusion: Assessment of Long-Term Prospects for Toncoin
Examining the long-term prospects of TON reveals that if the coin’s momentum changes from bullish to bearish, the price will start to decline towards the support at $6. Once the price reaches this level and breaks belowThere could be a drop that will test the support level at $4.6 and if the price breaks through this level, it will likely move on to testing other lower support levels on the chart.
However, if Toncoin reaches the $6 support level and experiences a rebound, it could start moving higher towards the $7.75 resistance. If the price breaks through this resistance, it could continue to rise, testing its all-time high of $8.20 and potentially setting up-to-date all-time record when this threshold is exceeded.
Featured image from Adobe Stock, chart from Tradingview.com
