beincrypto.com
The outlook for Toncoin (TON) has turned negative as its price steadily decreased after a bearish signal appeared on the daily chart last weekend. Currently trading at $5.51, TON has dropped by 6%, indicating the impact of the negative sentiment.
However, despite the downtrend, market participants have continued to buy the altcoin, likely anticipating a reversal. This shows optimism among investors, even in the face of bearish technical signals. Whether this buying pressure will be enough to halt the decline and reverse the trend remains to be seen.
Death Cross Puts Toncoin at Risk
BeInCrypto’s analysis of Toncoin’s price on the one-day chart revealed the appearance of a death cross on September 13. This bearish signal typically indicates downward momentum, as it occurs when the 50-day short-term moving average crosses below the 200-day long-term moving average. It emerged shortly after the altcoin hit a seven-day high of $5.77, marking a potential shift in market sentiment towards a more negative outlook.
Despite the recent price drop, market participants remain optimistic about reversing the bearish trend for Toncoin (TON). Interestingly, the death cross signal hasn’t discouraged accumulation. Instead, accumulation has intensified, as reflected by the rising Chaikin Money Flow (CMF), which currently stands at 0.05 and is trending upward.
This suggests that selling pressure may not be as strong as it appears, with TON buyers stepping in to absorb sales, possibly leading to a near-term price rebound. Further supporting this outlook is the Moving Average Convergence/Divergence (MACD) indicator, which measures trend direction and potential price reversals.
As of now, TON’s MACD line (blue) is above the signal line (orange) and is approaching the zero line. This setup indicates strong buying pressure and sustained optimism among TON traders, despite the recent price decline.
Read more: 6 Best Toncoin (TON) Wallets in 2024
TON Price Prediction: 19% Price Drop If Trend Persists
If TON’s buying pressure continues to intensify, it could counteract the impact of the death cross, potentially reversing the bearish trend. This momentum shift might push TON’s price back toward the resistance level at $6.82, indicating a potential recovery.
Read more: 10 Best Altcoin Exchanges In 2024
Conversely, if buying pressure weakens, the bearish trend for Toncoin could persist, potentially resulting in a further decline of 19%. This could push TON’s price down to $4.46, marking a six-month low.