Decline in TON’s Value and Potential for Recovery
Toncoin [TON] has seen a decrease of 10.12% in its value over the previous month, indicating a recent bearish trend. Despite this, the uptick in significant transaction volumes and emerging technical signals suggest that this downtrend may be temporary, with a possible recovery on the horizon.
The surge in major transactions in the past 24 hours has pushed TON into a short-term decline. Data from IntoTheBlock indicates that these transactions have reached 1,850.
The notable increase in significant transaction numbers, as well as a drop in price and a 27% rise in volume to 195.15 million, collectively indicate bearish momentum. These factors also indicate a further decrease as large investors have been offloading their holdings.
From a technical perspective, this downward movement is expected to be short-lived, with TON likely finding support around $4.601. This level represents a strong buying zone that could trigger a price recovery, not far from its current price of $4.873.
This support level coincides with a descending line pattern, which could act as a positive catalyst if TON breaks above the trendline with a confirmed closing price. A successful breakout could propel the price towards a target of $7.262.
However, in the event of heightened selling pressure, TON might drop to a lower support level near $3.319.
Market Sentiment and Potential for Upside
The prevailing market sentiment regarding TON indicates that a short-term decline may precede a recovery that could push the asset towards a long-term goal.
At the time of writing, market sentiment suggested a possible short-term decrease. This sentiment was reinforced by liquidation data from the past 24 hours, showing significant losses incurred by long traders, hinting at potential downside pressure.
In particular, long traders suffered losses of $340.9k, contrasting with the $76.76k lost by short traders. This discrepancy indicates that the market has been favoring the side with larger losses, signaling further potential downward movement for TON.
Despite this, with short liquidations nearing levels of long liquidations, the selling pressure was relatively moderate. This implies that any decline could be limited and might set the stage for a quick recovery.
Additionally, the Weighted Funding Rate, a fee traded between traders in perpetual Futures markets based on positionings, had turned positive at the time of reporting.
A positive funding rate indicates that long positions are compensating short positions, signaling a rise in bullish sentiment. This change suggests that although a brief decline could occur, TON’s price might soon stabilize and trend upwards.
In conclusion, while TON might face a short-term setback, the prevailing bullish sentiment and moderate selling pressure indicate that any decline is likely to be brief. This could potentially propel the asset towards a speedy recovery.