beincrypto.com
Toncoin (TON) is approaching the critical psychological price level of $6.00, with market momentum supporting its rise.
However, while reaching $6.00 appears achievable, a rally beyond this point may encounter resistance, potentially slowing down any further price growth for the altcoin.
Toncoin Price Is Bullish; Investors Are Not
Toncoin is likely to break out above the $5.93 barrier, as there is minimal resistance at this point. According to the In/Out of the Money Around Price (IOMAP) data, only 61 million TON, worth approximately $351 million, was purchased around this price, indicating weak demand.
On the other hand, the support between $5.48 and $5.65 is stronger, where about 628 million TON, worth $3.6 billion, was bought. This suggests that the zone will act as a solid support floor if prices face downward pressure.
With relatively little resistance to the upside, Toncoin may breach $5.93 with ease. However, to maintain its upward momentum, TON will need continued investor confidence and strong demand.
Read more: What Are Telegram Bot Coins?
However, the broader macro momentum shows signs of concern. Active addresses on the Toncoin network have dropped by 31% in the last 11 days, decreasing from 3.5 million to 2.4 million. This decline in participation suggests that investors may be pulling back due to fears of volatility, which could slow Toncoin’s rally.
This reduced participation could signal waning investor confidence in the short term. While the support floor remains strong, the pullback in active addresses may limit TON’s ability to sustain a long-term rally.
TON Price Prediction: Trying Its Best
Toncoin is currently trading at $5.77, aiming to break above the key $5.96 resistance level. If this barrier is breached, TON could rise to $6.00, marking a near-monthly high for the altcoin.
However, while a move above $5.96 seems likely, breaking past the next resistance at $6.36 could prove challenging. Flipping $6.36 into support is crucial for Toncoin to target $7.00, although this price point remains a longer-term goal.
Read more: What Are Telegram Bot Coins?
If investors begin taking profits at the current price levels, TON may fail to break above $5.96. This would invalidate the bullish outlook and keep Toncoin consolidated above the critical $5.49 support floor, limiting further upward movement.