- The crypto market is showing signs of recovery, with Toncoin price surging by 42% and TVL rising by 28%.
- Toncoin faces crucial resistance at $6.58, affecting the potential for further gains as 3.56 million addresses currently hold losses.
- If the resistance level is cleared, Toncoin might see significant price movements, impacting the broader crypto market dynamics.
Toncoin’s price surge of 42% reflects the broader crypto market recovery, with growing investor confidence and a notable rise in TVL.
Toncoin Reaches Key Resistance Amid Market Recovery
Toncoin has recently experienced a significant price surge, climbing 42% as the overall crypto market recovers. This price movement has retested the critical $6.75 resistance level. The distribution of 38.5 million TON across 3.56 million addresses has been a key factor in creating this resistance. Despite this, the rise in Total Value Locked (TVL) by 28% suggests more bullish momentum ahead.
Indicators Point to Potential Breakout
Analysts have observed a drop in the Average Directional Index (ADX) slope to 38%, indicating a decrease in bearish momentum for Toncoin. This change, coupled with the recent TVL surge, suggests a possible breakout above the resistance level. Historically, such a rise in TVL is a bullish signal, indicating increased investor confidence and capital influx into the ecosystem.
Challenges Ahead for Toncoin
Despite the bullish indicators, Toncoin faces several challenges. The In/Out of the Money Around Price (IOMAP) metric reveals that approximately 3.56 million addresses hold around 38.7 million TON tokens, with an average purchase price of $6.58. This cluster of “out of the money” addresses may act as a resistance level, as these holders could sell their tokens to break even, increasing supply pressure.
Market Sentiment and Future Outlook
If the current market sentiment towards a potential downturn prevails, the mentioned addresses could intensify the supply pressure by offloading their TON tokens. The 50-day Exponential Moving Average (EMA) also presents an additional layer of resistance around the current price levels. If Toncoin fails to break through this resistance, it might see a significant reversal, potentially dropping by 28% to retest long-term support at $4.7.
Conclusion
Toncoin’s recent price surge amid a recovering crypto market indicates a potential bullish phase. However, overcoming key resistance at $6.58 remains crucial for sustained upward momentum. Investors should closely monitor market indicators and sentiment to gauge future movements. The rise in TVL and decreasing ADX slope are promising signs, but substantial resistance levels and market caution could impact Toncoin’s trajectory.
