Telegram coin Toncoin’s (TON) price marked a new all-time high last month. TON attempted to repeat it at the beginning of July but failed to do so.
The subsequent attempts at recovery throughout this month have also failed, which seems to be affecting the investors’ bullishness.
SponsoredToncoin Investors Step Back
Due to rising uncertainty, Toncoin’s price could move sideways or slightly decline in the coming days. The Relative Strength Index (RSI) shows signs of this.
The decline indicates that TON has been drained of buying pressure. A drop below 50.0 also suggests weakening momentum and a potential shift towards bearish sentiment in the market.
Toncoin’s active addresses have also experienced a significant decline, with a 42% drop recorded. This reduction in active addresses highlights a decrease in market participation, which could further impact TON’s price dynamics.
Read More: What is Notcoin (NOT)? A Guide to the Telegram-Based GameFi Token
Investors who are currently in profit are holding back from trading. This cautious behavior is aimed at preventing a decline in price, as well as safeguarding their gains. By refraining from selling, these investors hope to maintain the current price levels.
The drop in active addresses suggests that fewer participants are engaging in transactions, which could indicate a lack of confidence in the market’s short-term direction. This decline in activity might lead to lower liquidity and increased price volatility for Toncoin.
Sponsored
This shows that TON investors are adopting a wait-and-see approach. Their aim is to protect their profits while navigating an uncertain market environment.
TON Price Prediction: Consolidation Ahead
Since the beginning of July, Toncoin’s price at $7.23 has been testing $7.53 and $7.07 as resistance and support. This has resulted in the formation of a consolidation zone that TON has not been able to break out of.
The altcoin will likely continue its sideways movement or slip below $7.07 based on the aforementioned factors. The drawdown could send the Telegram coin to $6.50.
Read More: What Are Telegram Bot Coins?
On the other hand, a breakout would push Toncoin’s price closer to an all-time high at $8.28. While the chances are low, a breach of this price would form a new all-time high and also invalidate the bearish thesis.
