Similar to many other cryptocurrencies, Toncoin [TON] has experienced notable growth in the past day. The token is currently facing a critical resistance level, and overcoming this hurdle could potentially trigger a significant uptrend.
On the other hand, a failed attempt to breach this resistance may lead to a price retracement. Let’s delve into the current scenario.
Testing the Resistance
According to data from CoinMarketCap, Toncoin’s price showed a modest 4% increase in the last 24 hours. At the time of this writing, TON was valued at $5.31, holding a market capitalization exceeding $13 million, positioning it as the ninth-largest cryptocurrency in the market.
Despite the price appreciation, only 15.4 million TON addresses were reporting profits, representing 26% of the total addresses.
A breakout could potentially alter this statistic. An analysis of Toncoin’s daily chart by CryptoCrypto hinted at an impending test of a crucial resistance level.
If a bullish breakout occurs, investors may witness Toncoin retesting $6.8, and a successful surge beyond that level could pave the way for TON to reclaim $7.9.
Prospects of a Toncoin Breakout
CryptoCrypto further examined the on-chain data of the token to ascertain if key metrics were also supportive of a price surge. Our analysis indicated that investors were beginning to accumulate TON tokens.
Santiment’s data revealed a significant drop in Toncoin’s supply on exchanges, accompanied by a rise in off-exchange supply, signaling increasing buying pressure.
Contrary to retail investors, top addresses holding TON reduced their supply. Insights from Hyblock Capital echoed this trend.
Observing TON’s whale vs. retail delta decline from 100 to 59, it signals a reduced market exposure by whales, which could be interpreted as a bearish indication.
Further examination of the daily chart revealed bullish signs, with the MACD indicator displaying a positive crossover. The Chaikin Money Flow (CMF) also exhibited an upward trend.
TON’s Money Flow Index mirrored these patterns, indicating a potential price increase in the near future.
Based on our analysis of data from Hyblock Capital, a sustained price rally could propel Toncoin to reach $5.7. However, at this juncture, the token might undergo a correction due to increased liquidation pressures.
Conversely, in the scenario of a bearish reversal, Toncoin could experience a downturn towards $3.7 in the days ahead.