Recent weeks have witnessed a significant uptrend in the cryptocurrency market, with Bitcoin [BTC] reaching a local peak of $69k.
However, the market saw a downturn in the past week, leading to negative movements across most cryptocurrencies. Consequently, recent losses have outweighed gains made over the month.
Among the cryptocurrencies heavily impacted was Toncoin [TON], which has witnessed a noticeable decline after reaching a monthly high of $5.8.
Currently, Toncoin is priced at $4.95, reflecting a 2.42% decrease in the last 24 hours.
On a monthly basis, the altcoin has declined by 14.64%, with a continuation of this bearish trend seen on weekly charts, dropping by 6.06%.
The current market conditions have sparked discussions within the crypto community about Toncoin’s future direction.
Notable crypto analyst Ali Martinez has indicated that the current conditions of TON suggest a potential buying opportunity.
Positive Signals for TON
Martinez’s analysis highlighted that the TD sequential indicator displayed a buy signal on Toncoin’s 12-hour charts, hinting at a possible price recovery in the near term.
As selling pressure weakens and bears lose their grip, buyers may seize the opportunity to enter the market at lower prices, resulting in increased buying pressure.
The emergence of the buy signal has driven a surge in trading activities over the past day, elevating TON’s trading volume by 126% to $313.1 million, indicating increased market participation at lower price levels.
If this trend persists, a price rebound is anticipated, potentially leading to further gains on the price charts.
Potential Upside for TON
Despite enduring a prolonged decline, the current market conditions suggest a shift towards optimism, signaling potential gains ahead for the altcoin.
For instance, the Netflow Ratio of Toncoin’s major holders has dropped from a monthly high of 289% to 70%, indicating a change in sentiment as these holders continue to accumulate assets in anticipation of future growth.
This decline reflects a growing market confidence.
Moreover, the total outflows of Toncoin from Aggregated Exchanges have surged from a low of 1.86 million tokens to 7 million, indicating a trend of investors moving their Ton holdings to cold wallets, underscoring their belief in the altcoin’s future performance.
In summary, TON is undergoing a shift in market sentiment from bearish to bullish at present. Should this positive sentiment persist, Toncoin is likely to retest higher price levels.
As a result, the altcoin could target a resistance level of $5.4 in the short term, with a successful breakout potentially propelling TON to $5.8. However, failure by the bulls to dominate the market could lead to a further decline, with TON potentially dropping to $4.02.