TON is facing renewed selling pressure as its price falls again, putting recovery efforts at risk. Despite previous attempts to regain upward momentum, the cryptocurrency is now struggling to maintain its position as it falls further below key support levels. With the bearish movement seemingly regaining control, the market is closely watching whether the current support levels can hold or not. As TON struggles to maintain its position, the outlook becomes increasingly uncertain, with more downside risks on the horizon.
This article aims to explore TON’s ongoing struggle to regain an upward trajectory as a new price decline threatens its recovery. By delving into recent market shifts, support levels and technical indicators, we will assess the likelihood of a rebound or further declines and provide insight into what could happen next for TON and whether the bulls can regain control.
Indicators point to further weakness
TON recently entered the bearish zone on the 4-hours chart, falling directly below the 100-day simple moving average (SMA) and approaching the crucial support level of $4.6. This drop below the 100-day SMA indicates weakening strength, and with sellers in control, the cryptocurrency faces the potential for further losses.
An analysis of the 4-hour Relative Strength Index (RSI) shows that the signal line has fallen to 40%, after a brief rise to the 50% threshold, suggesting that buying pressure is waning as the RSI moves deeper into the bearish zone. Typically, an RSI reading below 50% indicates that sellers are gaining control, which could lead to downward pressure on the price.
Additionally, TON has shown strong downward momentum on the daily chart, struggling to overcome the resistance at $6, as evidenced by the formation of a negative candlestick. With sellers firmly in control and failing to break above this key level, coupled with continued trading below the 100-day SMA, there is potential for further downside. Without significant buying interest to counter selling pressure, digital assets may face deeper declines.
A closer examination of the RSI on the daily chart reveals that the RSI signal line currently lies at 40%, having fallen below the crucial 50% threshold. With the RSI trending at this level, it indicates that selling pressure is increasing, which could pave the way for further declines unless the bulls can intervene to reverse the market’s course.
Possible scenarios: Will TON rebound or slide deeper?
TON is currently heading towards the $4.6 support level, where a potential rebound could occur if buyers can regain control. A successful recovery from this level could push the price higher, with the $6 resistance level acting as the next target, which could reignite the asset’s recovery momentum.
However, failure to hold the current support level could lead to further declines, with TON potentially falling towards the target price of $2 and even lower levels thereafter.