Why can the price of Toncoin drop by 15%?
Toncoin's price has fallen by 6% in the past month, currently trading at $5.19. The Telegram-linked token is showing downward pressure as buying interest declines, hampering recovery efforts.
Technical indicators suggest that Toncoin may be approaching a 30-day low, with bearish sentiment leading to further potential downside.
Tonkoin struggles with Waning's desire
Toncoin's price is currently sitting below the Ichimoku Cloud, which gauges the market's trend, momentum and support/resistance levels.
When the price of the asset falls below the cloud, it indicates that the asset is in a downtrend. This confirms the negative market sentiment, that the sellers will control and the price may continue to decrease. In this case, the cloud acts as a resistance level, allowing the price to rise without increasing buying pressure.
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In addition, the up line of Ton Aaron is at 0%, which indicates that the price has not reached a new high in the near future. Aaron's indicator measures the strength and direction of a trend.
The upside line is 0% when the asset price has not made a new high within the observation period (typically 14 days). Absence of new highs indicate an upward trend in the market, because buyers have lost their strength in the absence of upward momentum.
Negative readings from Toncoin's Elder-Ray Index confirm this. At press time, this indicator, which measures buying and selling pressure in the market, was below zero -0.11. When the asset Elder-Ray index is negative, the bears dominate the market.
Ton Price Forecast: A double-digit drop is forecast
If selling pressure increases, Toncoin's price could fall by 15%, possibly reaching a low of $4.45 by September 4. According to the Fibonacci Retracement tool, this price point represents the next major support level.
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However, if the altcoin experiences a resurgence in demand, this pessimistic view may be overturned. If buying pressure increases, Toncoin's price may break above the resistance established by the Ichimoku Cloud, paving the way for a rally to $7.46.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
