Markets
Toncoin Price Prediction: Is TON Drop Below $7 Good News For You?
- Toncoin Continues to Cool After 180% Rally in 2024
- TON looked massively undervalued, but lost key support levels
Toncholine [TON] is perhaps one of the best performing cryptocurrencies of 2024. On a YTD (year to date) basis, TON, at press time, was up 186%, from $2 to over $8, eclipsing even Bitcoin [BTC] 61%.
However, after retesting above $8 in early July, Toncoin [TON] erased some of its gains, slipping below $7 on the charts.
Its weak attempt to reclaim the $7 level at press time means its +15% losses could deepen further. This will open up even more discounted buying for speculative reentry.
Are there any other TON deals under $7?
Source: TON/USDT, TradingView
Overall, the market witnessed a relief rally in the mid-week as Bitcoin [BTC] retested the $68k level. This feat occurred just hours before Trump’s speech at the Bitcoin conference in 2024. This may be associated with the elevated bullish expectations stemming from the Fed’s rate decision on July 31.
However, TON looked weak on the price chart despite a possible bullish momentum on the macro front. The retracement slipped below the 20-day SMA (Simple Moving Average) and the 23.6% Fibonacci retracement level. Thus, TON lost two crucial short-term support levels.
This means that short sellers could drag TON towards the two marked daily bullish order blocks (white and cyan), which coincide with the $5 and $6 levels. Hence, these two could be key demand levels to watch if TON fails to rally above $7.
Furthermore, the below-average readings of RSI (Relative Strength Index) and OBV (On Balance Volume) have also outlined a bearish sentiment for TON in the spot market.
TON – Underrated?
Source: Santiment
According to Santiment’s MVRV (Market Value Realized Value), the negative reading (-7%) suggested that TON was undervalued. This metric tracks the average cost of the token, with the press time reading showing that TON would be a great buy.
Light Toncholine [TON] Price forecast for 2024-2025
However, there did not appear to be a strong reversal in network activity, as evidenced by a slight increase in daily active addresses. Finally, at press time, overall market sentiment had not strengthened enough to indicate a bullish reversal, as the Weighted Sentiment reading was neutral.
Overall, the above readings suggest that TONS The position at press time was attractive to speculative bulls, especially when it dropped to $6 or $5.
However, a sharp retracement of BTC after Trump’s speech or the Fed’s rate decision could delay TON’s recovery in early August.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and represents solely the opinion of the author.