Recent weeks have seen Toncoin [TON] trading within the range of $5.1 to $5.5. While many alternative cryptocurrencies have been reaching new highs amidst Bitcoin’s strong performance, TON has shown modest gains.
Currently, the price of Toncoin stands at $5.55, representing a 1.83% increase in the last 24 hours. Over the week, the altcoin has seen a 4.91% uptrend, and over the month, a rise of 6.85%.
Despite these gains, TON still lags behind its all-time high (ATH) of $8.24 by approximately 32.84%. Consequently, despite some positive movements in pricing, the overall market sentiment towards TON remains bearish.
What Insights Can be Gained from TON’s Charts?
Analysis from CryptoCrypto suggests that Toncoin is facing significant selling pressure within a bullish market sentiment.
This pressure is reflected in the increased inflows into exchanges. Data from IntoTheBlock indicates a 37.54% surge in exchange inflows over the past 24 hours, rising from $34.05 million to $48.69 million.
Elevated inflows typically signal investors’ lack of confidence, leading to asset transfers for profit-taking or loss mitigation.
Further, Toncoin’s Stoch RSI recently underwent a bearish crossover, indicating prevailing selling pressure. The indicator fell from 85 to 39 during this period.
Moreover, the Stock-to-Flow (SFR) ratio for Toncoin dropped sharply from 44.28 to 0 within a week, signaling an oversupply situation. An excess of supply with insufficient demand often foreshadows price declines.
Should inflows surge while stock levels remain stable or decrease, the resulting oversupply can diminish Toncoin’s perceived scarcity, leading to a substantial drop in value.
What Lies Ahead for Toncoin?
While TON has seen positive movements in pricing, the presence of a long-legged doji suggests uncertainty among buyers. Such a candlestick pattern indicates a market where both buyers and sellers are trying to gain control.
However, sellers seem to have an edge, as indicated by the Relative Vigor Index (RVGI) signaling a bearish crossover four days ago.
If the prevailing bearish sentiments persist, TON could dip to $5.2, where robust support exists. Conversely, a successful breakthrough by buyers could propel the altcoin beyond the consolidation range towards $6.6, a level characterized by significant resistance.