Toncoin (TON) has recently seen a notable price decline, falling below its 100-day simple moving average (SMA). This breach of a critical technical indicator has put the digital asset under bearish pressure, raising concerns among investors and traders. With the $6 mark now appearing as a potential target, there is Marketplace Speculation on whether the price will continue to fall or whether a possible recovery could occur.
This article aims to inform readers about the potential implications of Toncoin’s recent technical breach by providing an in-depth analysis of its market performance, specifically focusing on the price falling below the 100-day SMA. It also assesses possible future scenarios for TON’s price movement, exploring whether the digital asset will continue to fall towards the $6 mark or if a recovery could be imminent.
At the time of writing, Toncoin’s price is trading 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, TON’s market cap has increased by 2.01%, while its trading volume has decreased by 14.75%.
Breaking Below the 100-Day SMA: A Technical Analysis
After successfully crossing below the 100-day simple moving average (SMA), the TON price on the 4-hour chart is currently showing a short-term bullish correction, marked by a series of bullish candlesticks. However, it is important to note that the cryptocurrency may eventually drop again towards the $6 support level as it remains trading below the 100-day SMA.
Although the signal line of the Relative Strength Index (RSI) indicator on the 4-hour chart is attempting an upward move, it is still trending below the 50% level. This suggests that the current uptrend may be short-lived as the momentum may shift from bullish to bearish. rudepotentially taking the price towards the $6 support mark.
On the 1-day chart, Toncoin is attempting to retest the 100-day SMA by forming a single bullish candlestick after breaking below it. After this retest, the crypto asset may resume its downward movement towards the $6 support mark.
![Toncoin Under Pressure as TON Price Drops Below 100-Day SMA, $6 Nears 1 Toncoin](https://thegurumedia.com/wp-content/uploads/2024/07/WhatsApp-Image-2024-07-26-at-11.39.13-AM.jpeg)
Finally, it can be observed that the 1-day RSI indicator’s signal line has crossed below 50% and is currently moving towards the oversold zone. This positioning of the RSI indicator indicates a potential change in momentum from bullish to bearish for the TON price.
Conclusion: Assessing the Long-Term Prospects for Toncoin
Exploring TON’s long-term outlook reveals that if the coin’s momentum changes from bullish to bearish, the price will start falling towards the $6 support mark. When the price reaches this level and break belowit could drop to test the $4.6 support mark and likely move on to test other lower support marks on the chart if the price breaks above this level.
However, if Toncoin hits the $6 support range and experiences a recovery, it could start climbing towards the $7.75 resistance mark. If the price breaks this resistance, it could continue to rise, testing its all-time high of $8.20 and potentially establishing a new historical record when this mark is exceeded.
Featured image from Adobe Stock, chart from Tradingview.com