Toncoin’s (TON) price recently faced significant resistance at the crucial level of $6.00, a key psychological barrier. Although the altcoin reached a high of $5.96, it was unable to maintain the momentum needed to convert this resistance into support. Despite this setback, the potential for recovery remains, with Toncoin still holding the possibility of upward movement.
The macro momentum for Toncoin has begun to show signs of weakness. The Moving Average Convergence Divergence (MACD) indicator, commonly used to evaluate momentum, suggests that bullish momentum is fading. The receding green bars on the histogram indicate a loss of momentum, signaling a weakening bullish trend.
However, this does not necessarily indicate a complete reversal. As long as the MACD remains above the neutral line, there are no definitive signs of bearishness. A drop below this neutral zone would confirm a bearish shift, but currently, Toncoin remains in a vulnerable yet undecided state.
Toncoin’s market sentiment has improved, particularly with the decline in short-term investors' dominance. These investors typically hold assets for less than a month and are prone to quick sell-offs, adding volatility to the price. Over the last ten days, the share of such investors has decreased from 26% to 15%, a notable 11% decline.
This shift is significant, as values above 25% often indicate potential bearish pressure. With fewer short-term holders, the risk of a sharp sell-off diminishes, thereby stabilizing Toncoin’s price and reducing the likelihood of immediate bearishness.
Currently, Toncoin is trading at $5.81, having recently failed to breach the resistance at $5.96. This resistance is critical for the cryptocurrency, as breaking through it could lead to a push past the $6.00 mark, a level that remains elusive.
Despite the unsuccessful breach, Toncoin still stands a chance of flipping $5.96 into support. If successful, this could trigger a rally, with $6.36 being the next target for bullish investors. However, if Toncoin fails to break $5.96 again and bullish momentum continues to wane, the asset may enter a consolidation phase, potentially trading between $5.37 and $5.96, which could invalidate the current bullish outlook.
