Potential Resilience in the Face of TON’s Downward Trend
TON has displayed a mix of results recently, witnessing both advancements and setbacks over various time periods. Presently, its value has decreased by 4.95% in the past month while recovering by 1.19% on a weekly basis.
Despite the recent positive movements, there are indications suggesting a looming downturn for TON as the pressure to sell intensifies, potentially causing a further slide in its value.
Struggle at a Crucial Level Amidst Increasing Pressure to Sell
At the current juncture, TON finds itself at a pivotal point on its price chart. Although showing signs of a bullish triangle pattern typically indicating an uptrend, TON is yet to break through while appearing poised to decline.
A noticeable resistance zone at $5.009 seems to be impeding TON’s progress, known for the significant selling pressure it exerts, which could halt or drive the price downwards.
The resistance level coincides with the In/Out of the Money Around Price (IOMAP) indicator’s data, pinpointing that a mean price of $4.93 (ranging between 4.88 and 5.03) has attracted sell orders totaling $80.9 million from 5.1 million wallet addresses.
This resistance is in alignment with the IOMAP’s function of identifying crucial support and resistance levels based on where holders initiated their position compared to the present price.
Given the mounting selling pressure, TON is likely eyeing the next support level at $4.035 – a mark last witnessed back in March 2024. Should this selling pressure persist, the asset might face further declines down to $3.319.
Bearish Sentiment Prevails as Selling Pressure Drives TON’s Descent
Recent analysis by CryptoCrypto indicates that TON has been consistently under selling pressure lately, with Open Interest (representing outstanding futures contracts) witnessing a decline since August 27.
The decrease in Open Interest suggests reduced market activity, contributing to TON’s descent into bearish territory.
The absence of a reversal in the Open Interest trend implies that TON remains susceptible to downward pressure.
Furthermore, data on recent liquidations reveals that long traders faced growing losses as TON’s value moved against their optimistic positions, resulting in approximately $151,620 worth of long positions being liquidated at the time of reporting.
The convergence of declining Open Interest and increasing long liquidations suggests a continuation of TON’s downward trajectory.
However, there’s a glimmer of hope in the recent exchange outflow statistics. Notable outflows from exchanges, as detected by Coinglass, hint at investors potentially shifting towards long-term holding strategies, a move that reflects confidence in the asset and a commitment to hold it for an extended period.
In the past 24 hours, $3.35 million worth of TON has exited exchanges, with a total of $17.38 million withdrawn over the last week. These outflows might have provided temporary support against TON’s downward trajectory.
Should this trend of outflows persist, TON could find stability. However, a slowdown in outflows may expose TON to further declines in value.