Toncoin （TON） has breached its 100-day Simple Moving Average （SMA）, triggering bearish pressure and raising concerns about further declines towards the $6 mark.
Points
- TON price falls below 100-day SMA
- Bearish pressure and potential decline to $6
- Market capitalization and trading volume details
- Technical analysis of price movement and RSI indicator
- Possible scenarios for TON’s future price movement
Toncoin （TON） has recently experienced a notable price decline, dropping below its 100-day Simple Moving Average （SMA）. This breach of a critical technical indicator has placed the digital asset under significant bearish pressure, raising concerns among investors and traders about its near-term performance.
As of the time of writing, Toncoin is trading around $6.75, with a market capitalization exceeding $16 billion and a trading volume surpassing $220 million. Over the last 24 hours, TON’s market capitalization has increased by 2.01%, while its trading volume has decreased by 14.75%.
Breaking Below the 100-Day SMA: A Technical Analysis
Following the breach of the 100-day SMA, Toncoin’s price is showing a short-term bullish correction, marked by a series of bullish candlesticks
on the 4-hour chart. However, the cryptocurrency remains at risk of declining towards the $6 support level again as it trades below the 100-day SMA.
The Relative Strength Index （RSI） indicator on the 4-hour chart is attempting an upward move but is still trending below the 50% level. This suggests that the current bullish trend may be short-lived, as momentum could shift from bullish to bearish, potentially driving 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 breaching below it. Following this retest, the cryptocurrency asset may resume its downward movement towards the $6 support mark.
Finally, it can be observed that the signal line of the 1-day RSI indicator has crossed below 50% and is currently moving towards the oversold zone. This positioning of the RSI indicator indicates a potential shift in momentum from bullish to bearish for TON’s price.
Conclusion: Assessing the Long-Term Outlook for Toncoin
Exploring TON’s long-term outlook reveals that if the coin’s momentum shifts from bullish to bearish, the price will begin to move downward toward the $6 support mark. When the price reaches this level and breaks below, it may move lower to test the $4.6 support mark and probably move on to test other lower support marks on the chart if the price breaches this level.
However, should Toncoin reach the $6 support range and experience a rebound, it could begin to move upward toward the $7.75 resistance mark. If the price breaks through this resistance, it may continue to rise, testing its all-time high of $8.20 and potentially establishing a new all-time high when this mark is surpassed.
Explanation
- Simple Moving Average （SMA）: A calculation that takes the average of a selected range of prices, usually closing prices, by the number of periods in that range.
- Relative Strength Index （RSI）: A momentum oscillator that measures the speed and change of price movements, ranging from 0 to 100. It is typically used to identify overbought or oversold conditions in a market.
- Bearish: A market condition where prices are expected to decline.