Toncoin (TON), the cryptocurrency associated with Telegram, has faced difficulties maintaining the $7.50 support level and has lost its previous upward momentum.The Relative Strength Index (RSI) reflects a lack of buying interest, staying below 50, which signals weakened demand.
Additionally, there has been a 42% drop in active addresses, with investors holding onto their profits rather than selling, which could exacerbate any potential decline. After reaching a new all-time high last month, TON attempted to repeat this achievement in early July but failed. The ongoing struggles and failed recovery attempts this month have reduced investor enthusiasm.
Toncoin Faces Uncertainty: Price Likely to Move Sideways or Decline
Toncoin’s (TON) price is expected to either move sideways or experience a slight decline in the coming days due to rising uncertainty, as indicated by the Relative Strength Index (RSI). The RSI suggests that buying pressure has diminished, with the index remaining below 50, pointing to weakening momentum and a potential shift towards bearish sentiment in the market.
Toncoin Active Addresses. Source:Â IntoTheBlock
Additionally, Toncoin has seen a 42% drop in active addresses, reflecting a significant decrease in market participation. This decline could further impact TON’s price dynamics by reducing market activity and liquidity. Investors currently in profit are holding back from trading to avoid pushing the price down and to protect their gains. Their cautious behavior aims to stabilize the price and prevent further declines.
Toncoin RSI. Source: TradingView
The reduced number of active addresses indicates a lack of confidence in the short-term market direction, potentially leading to lower liquidity and increased price volatility for Toncoin. This situation suggests that investors are adopting a wait-and-see approach, seeking to safeguard their profits while navigating the uncertain market conditions.
Toncoin Price Movement: Consolidation Zone and Future Outlook
Since early July, Toncoin’s (TON) price has been oscillating between $7.53 and $7.07, testing these levels as resistance and support. This ongoing movement has created a consolidation zone, with Toncoin struggling to break out of this range.
Given the current market conditions, Toncoin is likely to continue its sideways movement or potentially slip below the $7.07 support level. If the price falls further, it could drop to around $6.50.
Toncoin Price Analysis. Source:Â TradingView
Conversely, a breakout above $7.53 could drive Toncoin closer to its all-time high of $8.28. Although the chances of reaching this level are currently low, such a breakout would not only set a new all-time high but also invalidate the bearish outlook for the altcoin.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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