2 Reasons Why TON Price May Struggle To Reach $10
TON price heads toward $6 after defending support at $5, hinting at fresh bullish momentum fronted by top altcoins, including Ethereum (ETH), Solana (XRP), and Ripple (XRP), on Tuesday. This bullish comeback witnessed by Toncoin price in the last 24 hours follows a gruesome sell-off over the weekend, which continued on Monday as global markets witnessed a major rout.
Traders will look for opportunities to buy TON in the hope of a sustainable recovery and a new all-time high past $10. However, with market uncertainty still a big challenge, it would be prudent to consider all scenarios, including a curtailed uptrend due to resistance at $6.25.
-
TON Price Comeback Nears $6.25 Hurdle
According to blockchain data from IntoTheBlock, 475 addresses purchased approximately 129,000 TON between $5 and $5.17, reinforcing Toncoin’s support at $5. This allowed bulls to regroup and tap into the liquidity to drive the ongoing recovery of TON.
Based on the current momentum, Toncoin could climb above $6 during the American session, thanks to traders buying dips above $5 support. However, the IOMAP model below predicts strong resistance at $6.25.
About 1,060 addresses that bought 1.64 million TON in the area could hinder the uptrend from reaching any higher should they decide to sell at breakeven. The potential increase in selling pressure will limit the bulls’ ability to sustain the uptrend, forcing TON price to retest the $5 support.
2. Stagnant Network Activity Undermines Toncoin’s Recovery
Toncoin’s network activity comprising new and active addresses has not changed significantly in the last 30 days. The Addresses metric reveals a drop to 194 on Monday compared to 398 addresses in the first week of July.
Active addresses recorded a small slump to 532 from 733 in the same period, implying that the network is not generating enough bullish momentum to keep the TON price moving north.
Toncoin Technical Indicators Signal Buy
Despite the slugging on-chain activity, TON price recovered to sit on top of the 200-day Exponential Moving Average (EMA), which is currently at $5.16 in the daily time frame. The Money Flow Index (MFI) turnaround into the neutral region emphasizes the growing bullish grip. It shows that traders are willing to increase the flow of money into Toncoin.
Traders will lean more toward long positions if Toncoin retests and rebounds from the 200-day short-term support. Further up, TON is anticipated to breach resistance at $6 – $6.25 before re-energizing the rally, targeting $8 and a new all-time high at $10.
Failing to break the $6 barrier could somewhat work against the bulls by delaying the move to $10. This may mean that traders sell at the earliest sign of profit going to buy low at the $5 support. A death cross pattern established when the 20-day EMA flipped under the 50-day EMA on July 25 may exacerbate the downtrend in the range between $3.5 and $4.
The post 2 Reasons Why TON Price May Struggle To Reach $10 appeared first on CoinGape.
