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Here’s Why Toncoin (TON) May Drop Below $5 Amid Extended Investor Pessimism

2 mins
Updated by Ryan James
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In Brief

  • Toncoin price has sustained above the $6 mark for days now but is likely going to fall to $4.7.
  • The Price DAA Divergence is flashing a sell signal due to the lack of price growth and declining interest.
  • The network realized profits recently hit an all-time high, which suggests that investors will sell to secure their gains.
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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 Sell

Toncoin’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.
Toncoin Network Realized Profit/Loss. Source: Santiment

TON 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.
Toncoin Price DAA Divergence. Source: Santiment

By 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 Downside

Toncoin’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.
TON/USDT 12-hour chart. Source: TradingView

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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.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Aaryamann Shrivastava
As a Mass Media (Journalism) graduate, my journey into cryptocurrency journalism has evolved into a distinguished role as an On-Chain Analyst over the past two and a half years. Collaborating with industry-leading media companies like FXStreet, AMBCrypto, and FXEmpire, I’ve delved deeply into the intricate realms of Crypto and Blockchain, crafting over 2,500 meticulously curated SEO-focused articles. Driven by a commitment to excellence, I remain steadfast in delivering the highest caliber...