Tontcoin [TON] has recently faced a notable downturn, with its price falling by 3.37% to reach approximately $4.69 within a 24-hour period.
Over the course of the past week, Tontcoin witnessed a more significant drop of 13%, reflecting a broader bearish trend in the market.
Analysis of Price Trends
At the current moment, Tontcoin shows a decline from a critical resistance point around $4.88. Historically, this level has played a crucial role in preventing further drops in price.
However, given the recent weakening of bullish momentum and rejection from the $4.88 level, the overall sentiment is shifting towards a bearish outlook.
If the resistance at $4.88 remains strong, there is a possibility of further decline towards the liquidation support at $4.51. Continued bearish pressure could potentially push the price down to test the $3.66 support level.
A breach below this crucial support level would signal a continued bearish trend.
Source: TradingView
Increased Whale Activity
Recent data from IntoTheBlock suggests a notable increase in whale activity surrounding Tontcoin.
Large transactions involving Tontcoin have surged by 8.8% in the past 24 hours. This rise in whale activity could indicate institutional interest or significant sell-offs, potentially impacting the short-term volatility of TON.
Source: IntoTheBlock
Conversely, data on exchange net flows indicate a sharp decrease of 779%.
This decline implies a significant outflow of Tontcoin from exchanges, a signal typically associated with a bullish sentiment as investors might be transferring coins to cold storage in anticipation of a potential price rebound.
Source: IntoTheBlock
Growth of Tontcoin’s Liquidation Pool at $4.51
An analysis of the liquidation heatmap reveals an expanding pool of liquidation at the $4.51 price level, currently at approximately 322,000 Tontcoin at risk.
This development suggests a potential influx of sell orders if Tontcoin nears this price point, potentially leading to increased downward pressure on the price.
The stochastic RSI is currently indicating a potential bullish reversal, with the indicator entering the oversold territory.
While a complete crossover has yet to occur, market participants are advised to monitor for a possible bullish signal that could trigger short-term buying activity.
Potential Recovery or Extended Decline for Tontcoin?
Looking forward, if Tontcoin manages to maintain its position above the key support level, there is a possibility of a gradual recovery in the coming months. This scenario could be further supported by ongoing whale activity and effective management of liquidation risks.
However, should the support level fail to hold, a deeper bearish sentiment may emerge, leading to further price drops and testing of lower support levels.