Toncoin （TON） is facing significant resistance and hints at a possible drawdown as it struggles to break past the $6.75 level. Technical indicators suggest a potential sell-off, which could lead to further price declines.
Points
- TON price faces resistance at $6.75
- Technical indicators suggest possible sell-off
- Analysis of IOMAP and exchange supply metrics
- Potential price targets and support levels
- Short-term and long-term outlook for TON
Toncoin （TON） has recently experienced a bounce to $6.75, but the cryptocurrency is facing significant resistance at this level. Over the last six days, TON has declined by 12%, struggling to break past this crucial resistance point. Based on current analysis, the price may remain below $7 in the coming days.
According to data from IntoTheBlock, the In/Out of Money Around Price （IOMAP） metric reveals a significant sell-wall. The IOMAP group shows that 2,290 addresses purchased 1.15 million TON tokens at an average price of $7.05, now in unrealized losses. This resistance level is stronger than the support at $6.61, where 1,510 addresses hold 636,690 TON tokens.
If TON’s price continues to bounce and reaches $6.93, these addresses may place significant sell orders, potentially causing the price to fall. Should this occur, TON’s next support level could be around $6.43 to $6.52.
Further evidence from the supply on exchanges metric shows an increase in TON tokens on exchanges from just under 7 million to 7.32 million. This suggests that investors are moving more tokens out of self-custody, implying potential selling pressure.
The Relative Strength Index （RSI） on the daily chart is below the neutral line, indicating bearish momentum. Additionally, the Ichimoku cloud, which identifies support and resistance levels, shows that the cloud is above the price, further indicating bearish conditions.
Between May and July 21, TON formed an ascending trendline, preventing the price from falling below $6.03. However, the price has since slipped below this trendline and the $7.00 support, suggesting a continued downward trend.
In summary, Toncoin is facing crucial resistance at $6.75 and hints at a possible drawdown. The combination of technical indicators and market metrics suggests a potential sell-off, leading to further price declines. Investors should closely monitor support levels and market conditions to assess TON’s short-term and long-term outlook.
Explanation
- In/Out of Money Around Price （IOMAP）: A metric that shows the number of addresses that bought an asset at different price levels, indicating potential support and resistance zones.
- Ichimoku Cloud: A technical analysis tool that identifies support and resistance levels, trend direction, and momentum.
- Relative Strength Index （RSI）: A momentum oscillator that measures the speed and change of price movements, typically used to identify overbought or oversold conditions.