Tonquin (TON) recently saw a significant price drop, as it dropped below its 100-day simple moving average (SMA). This breakout of a crucial technical indicator has put the digital asset under downward pressure, raising concerns among investors and traders. With the $6 level now approaching as a potential target, there is market Speculation about whether the price will continue to fall or whether a recovery could occur.
This article aims to inform readers about the potential implications of the recent Toncoin technical breakout by providing an in-depth analysis of the market performance, with a particular focus on the price falling below the 100-day simple moving average. It also assesses possible future scenarios for TON price action, exploring whether the digital asset will continue to decline towards the $6 level or whether a recovery is imminent.
At the time of writing, Toncoin is trading at around $6.75, up 2%, with a market cap of over $16 billion and a trading volume of over $220 million. Over the past 24 hours, there has been a 2.01% increase in TON’s market cap, while its trading volume has decreased by 14.75%.
Breakout Below 100-Day Simple Moving Average: Technical Analysis
After successfully crossing the 100-day Simple Moving Average (SMA), TON price on the 4-hour chart is currently showing a short-term bullish correction, marked by a series of bullish candles. However, it is important to note that Cryptocurrency The stock may eventually decline towards the $6 support level again, as it remains trading below the 100-day simple moving average.
Although the RSI signal line on the 4-hour chart is trying to move higher, it is still heading below the 50% level. This suggests that the current uptrend may be short-lived, as the momentum may turn from bullish to bearish. bearishwhich may push the price towards the support level of $6.
On the daily chart, Toncoin is trying to retest the 100-day SMA by forming a single bullish candle after breaking below it. After this retest, the cryptocurrency may resume its downward movement towards the $6 support level.
Finally, it can be noted that the signal line of the 1-day RSI has crossed below 50% and is currently moving towards the oversold zone. This RSI position indicates a potential shift in momentum from bullish to bearish for TON price.
Conclusion: Evaluating the long-term prospects of Toncoin
Exploring the long-term forecast for TON reveals that if the momentum of the coin turns from bullish to bearish, the price will start moving down towards the support level of $6. When the price reaches this level and Breaks belowThe price may move down to test the support level of $4.6 and may move to test other lower support levels on the chart if the price breaks this level.
However, if Toncoin reaches the $6 support range and witnesses a recovery, it could start moving upwards towards the $7.75 resistance level. If the price breaks this resistance, it could continue to rise, testing the all-time high of $8.20 and possibly establishing a New all time high When this mark is exceeded.
Featured image by Adobe Stock, chart by Tradingview.com
