During the recent month, the cryptocurrency market has witnessed a notable surge, where Bitcoin [BTC] saw a strong rise to reach a peak of $69k.
Nevertheless, in the past week, the market has cooled off, causing most digital currencies to dip into negative territory. Consequently, the recent losses have begun to overshadow the gains seen throughout the month.
TON, one of the most affected altcoins, faced a significant drop after reaching a monthly high of $5.8.
Currently, the price of Toncoin stands at $4.95, marking a 2.42% decrease within the last day.
Moreover, the altcoin has experienced a 14.64% decline over the month, with an additional 6.06% downturn on a weekly basis.
Given the ongoing market conditions, the crypto community has been deliberating on the future direction of TON.
Analyzing the situation, prominent crypto analyst Ali Martinez has indicated that the current state of TON presents a favorable buying opportunity.
Positive Indicators for TON
In his assessment, Martinez pointed out that the TD sequential revealed a buy signal on TON’s 12-hour charts, hinting at a potential price recovery in the near future.
This signal indicates that the selling pressure is easing, signaling a weakening trend for the bears. As selling momentum slows down, buyers may step in at lower price levels, generating buying interest.
Following the emergence of the buy signal, trading activities have surged over the past day with TON’s trading volume spiking by 126% to $313.1 million as traders entered the market at lower prices.
If this positive momentum continues, TON’s prices are expected to rebound, leading to further price gains on the charts.
Potential Gains on the Horizon
Despite the recent downward trend, the current conditions suggest that the bearish phase is waning, paving the way for potential gains in TON.
For instance, the Netflow Ratio of large holders in TON has dropped from 289% to 70%, indicating a shift in sentiment as these major holders accumulate assets in anticipation of future growth.
This decline serves as a confidence booster for the market participants.
Furthermore, the total outflows of TON from Aggregated Exchanges have increased from 1.86 million tokens to 7 million, indicating that investors are moving their TON tokens off exchanges and into cold wallets, showcasing a positive outlook for the altcoin.
Conclusively, TON is experiencing a shift from a bearish to a bullish sentiment at present. If this trend persists, TON is poised to reclaim higher levels.
The altcoin may target a $5.4 resistance level in the short term, with a breakout potentially leading to a rise to $5.8. However, failure by the bulls to dominate the market could result in a further decline, pushing TON down to $4.02.