Could the recent downtrend delay Toncoin’s immediate recovery prospects?
- Toncoin bears re-entered the market as the crypto fell its 20-day and 50-day EMA Crypto’s derivates data suggested a balanced sentiment with a slight edge to buyers.
After its latest bearish rally, Toncoin [TON] fell below its 20-day and 50-day EMA after witnessing a strong selling edge. Sellers renewed their pressure and provoked a streak of red candles as the altcoin found support near the $6.5 level.
If the sellers find a close below this support level, TON’s immediate recovery prospects could be delayed. However, any close above the $7 mark would confirm a near-term bullish edge. At press time, TON traded near $6.7.
TON falls below near-term EMAs
Source: TradingView, TON/USDT
From a long-term perspective, TON has been on an uptrend in 2024. Throughout its rally this year, the altcoin remained above the crucial 20-day and 50-day EMAs.
However, the recent movements have set the stage for the bears to step in and provoke a streak of red candles on the daily chart.
The recent reversal from the $8.2 resistance provoked a steep downtrend that helped the sellers pull the price below the near-term EMAs.
In the meantime, the price action saw a descending triangle-like pattern breakdown on the charts. As a result, TON lost the crucial $6.9-$7 support range.
Should the buyers step in at the immediate support level at $6.5, they could face resistance in the $6.9-$7 range. This range would be crucial in determining TON’s near-term movements.
A close above this range can help buyers reclaim their near-term edge in the market. In this case, buyers should look for a close toward the $7.6 resistance.
However, given the recent bearish crossover of the 20/50 EMA, bears would look to continue applying more pressure. Any close below the $6.5 support level can provoke a downtrend toward the $5.8-$6 range.
The MACD continued to show a bearish edge as it swayed below the 0 mark. However, a potential bullish crossover on the MACD lines will depict an ease in buying pressure.
Derivates data reveals THIS
Source: Coinglass
The rise in trading volume and open interest, along with the long-biased ratios on major exchanges, indicate positive sentiment.
However, the overall 24-hour long/short ratio being slightly short-biased suggests some traders are cautious or expecting a potential pullback.
Moreover, Its crucial to consider Bitcoin’s movements and assess the overall sentiment before making a buying decision.
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