Toncoin (TON) has exhibited a notable upward trajectory, experiencing a 6.50% increase in market capitalization. Concurrently, the price of the cryptocurrency Toncoin rose sharply from $5.14 to $5.46, where it stabilized. This sharp recovery with subsequent stability shows a strong bullish response after an initial dip and suggests renewed confidence in the value of the commodity at lower prices.
This TON price recovery is also supported by a substantial rise in trading volume, which surged by 35.53%. High activity and attention in the market underpin strong buyer participation and confirm the bullish mood.
Immediate reactions to price drop followed by stabilisation suggest support might be continued at these levels. Higher volumes combined with increasing market capitalisation can signal further upward movement.
Technical Indicators and Market Sentiment
Notwithstanding this recent surge, most technical indicators for Toncoin are bearish. Relative Strength Index (RSI) stands at 39.29, depicting possible oversold conditions for a good part of this crypto trend. This implies that there could be downward pressure on prices even though RSI is just about entering oversold levels, suggesting a potential reversal.
Besides, the Know Sure Thing (KST) indicator remains negative without any signs of turning positive, backing the ongoing bearish trend. Meanwhile, the Rate Of Change (ROC) of -9.15 confirms solid downward momentum observed during price declines, hence revealing more bearishness about it.
These bearish signals indicate that there might be further downside over the short term, with near-term support being tested around the $5.00 range.
Investor Sentiment and Market Dynamics
Toncoin investors seem upbeat despite this decline lately as well since plunging prices down to $5.27 have made much of this cryptocurrency not profitable anymore over the 24-hour period past two sessions; although, one key support has been regained thereby restoring the prospect of earnings for traders.
According to Global In/Out of Money (GIOM), around 643.86m TON, worth $3.55bn is currently at risk of loss. These tokens were purchased between $5.47 and $6.15 showing that the market participants are driving the recovery process to regain their losses.
At the same time, Chaikin Money Flow (CMF) data shows Toncoin experienced its biggest outflows in half a year thus suggesting a substantial reduction in buying pressure and investor sentiment; however, as we have just seen, an inflow reversal indicates a possible recovery of investor interest and changing market trends for altcoins.
Resistance Levels and Outlook
The current trading price of Toncoin stands at $5.53, indicating likely returns for investors. Consequently, with this value, it is trying to break through resistance located at $6.04 while simultaneously aiming to protect a support level around $5.49, making this digital asset profitable again once it passes these marks on its way up.
If Toncoin fails to secure $5.49 as a support level, it could continue struggling around this price, likely resulting in consolidation under $6.00 and extending the wait for profits. The daily market structure remains bearish, with intense selling pressure prevalent. The 78.6% retracement level at $5.36 might be visited next week, offering a potential buying opportunity for swing traders hoping for the downtrend to fade.
In the derivatives market, trading volume has decreased significantly by 41.42%, which can sometimes indicate a lack of interest in the asset at current price levels or suggest a consolidation phase before the next significant price move. Despite this, open interest is up by 5.26%, indicating that new positions are being opened. This could signify that traders are preparing for an anticipated price movement.
