Toncoin [TON] has seen a minor uptrend in the past 24 hours after facing notable declines in the preceding days. Despite this temporary rise, the overall sentiment remains pessimistic, with concerns about a potential impending death cross.
Nonetheless, Toncoin may witness a reversal in its downtrend if it manages to sustain levels above key price thresholds.
Toncoin Stuck in Bearish Territory
Examination reveals that Toncoin’s price has been steadily declining since late July, following a peak near the $6.00 level. Currently, the price hovers around $4.72, showing a slight uptick of 1.09% at the time of writing.
In addition, the price sits below the 50-day moving average (represented by the yellow line), acting as a resistance around $6.074, indicating a short-term bearish trend. Furthermore, it remains beneath the 200-day moving average (represented by the blue line), forming another resistance at approximately $5.907, signaling a long-term bearish trend.
Moreover, the chart indicates an impending death cross, a bearish sign where the yellow line is poised to cross below the blue line, suggesting a more negative outlook for TON.
The current RSI value stands at 33.77, placing it in the oversold territory. This hints that the price has been on a declining trajectory and might be ripe for a reversal or a relief bounce.
To confirm a reversal, the price must surpass the 50-day moving average at $6.074 and the 200-day moving average at $5.907.
Toncoin Struggles to Regain Top Ten Status
Analysis of CoinMarketCap data indicates that Toncoin (TON) has found it challenging to reclaim a position within the top ten cryptocurrencies.
Despite having a market capitalization of around $11.9 billion, TON remains approximately $200 million short of surpassing Cardano (ADA), the current holder of the tenth spot.
Additionally, TON has recorded the highest decline among the top 20 assets over the past week, dropping by over 11%. This significant decrease has impeded its progress in bridging the gap with Cardano and re-entering the top ten.
TON Traders Exhibit Minor Positive Signals
An evaluation of Toncoin’s funding rate on Coinglass indicates that market activity has been relatively subdued recently, with predominant negative trends observed.
However, there has been a slight positive shift, with the funding rate climbing to approximately 0.0073%.
This modest increase suggests some short-term optimism, although caution prevails in the overall market sentiment towards Toncoin. The uptick in the funding rate might signify a rise in long positions.
Nevertheless, maintaining positive momentum will necessitate a substantial and sustained surge in activity and sentiment to counterbalance the recent negative trends.