Here’s Why Toncoin (TON) May Drop Below $5 Amid Extended Investor Pessimism

Analysis4wks agoUpdate 6086cf...
64 0

In Brief

  • Toncoin price has sustained above the $6 mark for days now but is likely going to fall to $4.7.
  • The Price DAA Divergence is flashing a sell signal due to the lack of price growth and declining interest.
  • The network realized profits recently hit an all-time high, which suggests that investors will sell to secure their gains.

Toncoin (TON) price is observing a slow decline that could extend further than anticipated owing to bearishness among investors.

The potential drawdown will mostly halt after the price hits a two-month low, which would result in falling below $5.

Toncoin Investors Prepare to Sell

Toncoin’s price will mostly be noted to show a drawdown in the coming days as TON holders are going to move to sell their holdings. This is evinced by the high profits witnessed in the last couple of days.

The network realized that the profit loss indicator hit an all-time high this past week as Toncoin’s price hit an ATH. Historically, high realized profits are an indication of potential selling among investors. This is because asset holders would attempt to secure the gains they have recorded by selling their holdings.

Here’s Why Toncoin (TON) May Drop Below  Amid Extended Investor Pessimism
Toncoin Network Realized Profit/Loss. Source: Santiment

TON holders will also probably stick with this behavior and choose to sell their assets.

Read More: What Are Telegram Bot Coins?

The Price Daily Active Addresses (DAA) Divergence indicator also suggests a move in this direction. This divergence occurs when the price of a cryptocurrency and its daily active addresses move in opposite directions, indicating a potential disparity between market valuation and network usage.

Given that the price over the past few days has been positive, but participation has been actively declining, a sell signal is being noted. The indicator hints at the potential decline and suggests that investors offload their holdings before they lose their gains.

Here’s Why Toncoin (TON) May Drop Below  Amid Extended Investor Pessimism
Toncoin Price DAA Divergence. Source: Santiment

By the looks of it, this is the path that TON holders will choose, leading to Toncoin witnessing further losses.

TON Price Prediction: Prepare for More Downside

Toncoin’s price, at the time of writing, is trading at $6.2, and considering the aforementioned conditions, the altcoin will likely fall to test the support of $5.7. Losing this level would bring TON down to $4.7, marking a 25% drawdown for the investors.

Here’s Why Toncoin (TON) May Drop Below  Amid Extended Investor Pessimism
TON/USDT 12-hour chart. Source: TradingView

Read More: Which Are the Best Altcoins To Invest in April 2024?

On the other hand, if the $5.7 support is unbroken, Toncon’s price would bounce off it to reclaim $6.5 as support. Doing so would invalidate the bearish thesis and provide the altcoin the necessary boost to attempt a breach of $7.0 to mark a new ATH.

Top crypto projects in the US | April 2024

This article is sourced from the internet: Here’s Why Toncoin (TON) May Drop Below $5 Amid Extended Investor Pessimism

Related: Chainlink (LINK) Price Prediction: Are Whales Signalling a Possible Correction?

In Brief Chainlink price is losing the bullish steam falling by 5.66% in the last 48 hours. Important whale cohorts that historically have been a rally and price fall signal have sold over $40 million worth of LINK in the past month. Whale addresses dominate 69% of the entire circulating supply, substantiating their impact. Chainlink price has been trending upward for the past few weeks, with momentum seemingly slowing down over the last 48 hours. However, what’s more interesting is that whales have been signaling an impending correction for a long time now that might arrive rather soon. Chainlink Whales Might Induce Bearishness Chainlink price recently tagged the $21.69 resistance level, marking a 25-month high. The Oracle token corrected soon after dropping by 5.66% as of today. At the time…

 

© Copyright Notice

Related articles

No comments

You must be logged in to leave a comment!
Login immediately
No comments...