2024-4-18 16:30 |
Toncoin (TON) price is observing a slow decline that could extend further than anticipated owing to bearishness among investors.
The potential drawdown will mostly halt after the price hits a two-month low, which would result in falling below $5.
Toncoin Investors Prepare to SellToncoin’s price will mostly be noted to show a drawdown in the coming days as TON holders are going to move to sell their holdings. This is evinced by the high profits witnessed in the last couple of days.
The network realized that the profit loss indicator hit an all-time high this past week as Toncoin’s price hit an ATH. Historically, high realized profits are an indication of potential selling among investors. This is because asset holders would attempt to secure the gains they have recorded by selling their holdings.
Toncoin Network Realized Profit/Loss. Source: SantimentTON holders will also probably stick with this behavior and choose to sell their assets.
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The Price Daily Active Addresses (DAA) Divergence indicator also suggests a move in this direction. This divergence occurs when the price of a cryptocurrency and its daily active addresses move in opposite directions, indicating a potential disparity between market valuation and network usage.
Given that the price over the past few days has been positive, but participation has been actively declining, a sell signal is being noted. The indicator hints at the potential decline and suggests that investors offload their holdings before they lose their gains.
Toncoin Price DAA Divergence. Source: SantimentBy the looks of it, this is the path that TON holders will choose, leading to Toncoin witnessing further losses.
TON Price Prediction: Prepare for More DownsideToncoin’s price, at the time of writing, is trading at $6.2, and considering the aforementioned conditions, the altcoin will likely fall to test the support of $5.7. Losing this level would bring TON down to $4.7, marking a 25% drawdown for the investors.
TON/USDT 12-hour chart. Source: TradingViewRead More: Which Are the Best Altcoins To Invest in April 2024?
On the other hand, if the $5.7 support is unbroken, Toncon’s price would bounce off it to reclaim $6.5 as support. Doing so would invalidate the bearish thesis and provide the altcoin the necessary boost to attempt a breach of $7.0 to mark a new ATH.
The post Here’s Why Toncoin (TON) May Drop Below $5 Amid Extended Investor Pessimism appeared first on BeInCrypto.
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