Strong Buying At Major Support; Could TON Price Rally to ATH?

• Toncoin price has risen by 12.23% from the significant support level of $4.60.
• Toncoin ranks 10th in the cryptocurrency market in terms of market capitalization.
• The TON price has declined by 37% since July.

Since July, the Toncoin (TON) price has been in a bearish trend and has declined by 37%. It has been falling by facing resistance from a trendline and has dropped to the major support level of $4.60. However, the TON crypto has received buying pressure and has risen by 12% in the past few days.

Buyers have lifted the TON price to the descending trendline, and a breakout could be anticipated. Since October, the price has been struggling below the key moving averages, showing sellers’ strength. Let’s see how the TON price performs after the breakout from the key moving average.

Price Prospects Are Significantly Affected by Declining User Engagement

Due to issues with user activity, which has drastically declined, the TON price is unstable. According to recent data, Toncoin’s active address count has dropped to its lowest level in six months. This raises concerns about waning interest.

Telegram’s disappointing airdrops created excitement. However, it failed to meet consumers’ expectations. These reasons are to blame for the downward trend.

Due to this discontent with the airdrop’s worth, the community’s negative sentiments have increased selling pressure. It has reduced the number of short-term holders.

TON Price Has Formed a Descending Triangle

When writing, the TON crypto was trading at $5.04 2. It has remained neutral for the past 24 hours. The market capitalization was $12.80 Billion, and the 24-hour trading volume was $213 Million. The trading volume has increased by 31%, indicating new players’ engagement.

It could attract buyers if the Toncoin price triggers a breakout from the descending trendline. Once the price is sustained over the key moving averages, it may generate buying momentum. It could leap to a new all-time high if the price exceeds the $6 mark.

On the other hand, if the digital asset price faces resistance from the trendline, it may melt to the significant support level. Buyers might prefer to exit if the TON price starts trading below the major support level. Losing this level could generate strong selling pressure for the next few weeks.

Turning to the technical indicators, the RSI has triggered a bullish crossover with the RSI-based moving average. The RSI has rapidly recovered from the oversold zone. The MACD and the Signal line have shown a golden crossover but stayed below the Zero line.

Toncoin Price Prediction Based on Chart Structure

TON price has shown signs of recovery after rising 12.23% from its major support level of $4.60. That indicated a potential shift in momentum.

A breakout could signal further buying interest as the price now hovers around the critical descending trendline. This could propel the price past the $6 mark, opening the door to new all-time highs.

However, caution is warranted. The price may fail to overcome the trendline resistance and retreat below the primary support level. Significant selling pressure may ensue if this happens, leading to a bearish outlook.

Technical indicators suggest a potential reversal, like the bullish crossover in the RSI and the golden crossover in the MACD. However, sustained movement above key moving averages is crucial for confirming a bullish trend.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.