Throughout recent weeks, Toncoin [TON] has remained within the $5.1 to $5.5 range. While many other alternative cryptocurrencies have reached new highs, benefiting from Bitcoin’s momentum, TON has seen modest gains.
Presently, Toncoin is trading at $5.55, showing a 1.83% increase in value over the last 24 hours. Furthermore, on weekly and monthly charts, the altcoin has experienced gains of 4.91% and 6.85%, respectively.
Despite these recent advances, TON still lags behind its all-time high (ATH) of $8.24 by approximately 32.84%. Consequently, despite some positive movement on the price charts, market sentiment remains predominantly bearish.
Analysis of TON’s Chart Trends
According to analysis by CryptoCrypto, Toncoin is facing substantial selling pressure amidst a bearish sentiment in an otherwise bullish market.
This selling pressure is evident in the increased inflows to exchanges. Data from IntoTheBlock illustrates a notable 37.54% rise in exchange inflows over the past 24 hours, climbing from $34.05 million to $48.69 million.
When inflows to exchanges surge, it indicates investors’ lack of confidence, prompting them to transfer assets for selling to either maximize gains or limit losses.
Furthermore, Toncoin’s Stoch RSI recently underwent a bearish crossover, indicating that sellers are currently dominating the market. The Stoch RSI fell from 85 to 39 within this period.
Delving deeper, Toncoin’s Stock-to-Flow (SFR) ratio plummeted from 44.28 to 0 in the past week. Such a sharp decline suggests an oversupply of the altcoin. An excess of supply without a corresponding demand typically precedes price declines.
Hence, if the flow increases while the stock remains stable or decreases, this oversupply may lead to a reduction in scarcity, causing a significant drop in Toncoin’s perceived value.
Future Prospects for the Altcoin
Despite the price gains, TON’s long-legged doji pattern hints at indecisiveness among buyers. A daily candlestick closure with a long-legged doji indicates a tug-of-war between buyers and sellers attempting to control the market.
Nevertheless, sellers seem to have an edge, as indicated by the Relative Vigor Index (RVGI) displaying a bearish crossover four days ago.
If the prevailing bearish sentiments persist, TON might decline to $5.2, a level with strong support. Conversely, successful buyer initiatives could lead the altcoin to break out of its consolidation range and target $6.6, where significant resistance awaits.