- Toncoin’s price bounces back by 22% following Monday’s slump, but challenges persist with weak network activity and resistance at $6.25.
- According to IOMAP, a significant resistance level at $6.25 could obstruct Toncoin’s recovery.
- Diminished network activity may prevent TON from achieving the $10 price mark.
TON price makes a rebound but faces strong resistance at $6.25.
Tincoin Faces Potential Resistance at $6.25
After Toncoin defended its $5 support level, the price started to recover towards $6. This has been driven by a positive trend seen among top altcoins like Ethereum (ETH), Solana (SOL), and Ripple (XRP). However, traders are cautious as a significant resistance level exists at $6.25, according to the IOMAP model. Approximately 1.64 million TON held by about 475 addresses could act as a barrier if those investors decide to sell at this price.
Network Activity Decline: A Major Concern
Despite the recent price rebound, Toncoin’s network activity remains a concern. Recent data shows a decline in new and active addresses, which have dropped to 194 and 532, respectively, from much higher numbers in previous months. This stagnation could undermine sustained price growth, as a robust network activity is often correlated with bullish price movements.
Technical Indicators Present Mixed Signals
Tontoin’s technical indicators show a mix of signals. On one hand, the price has bounced back above the 200-day Exponential Moving Average (EMA), which suggests a potential further upside. The Money Flow Index (MFI) also signals potential bullish activity as it has moved into a neutral zone. However, traders should consider the recent death cross pattern formed by the 20-day EMA crossing below the 50-day EMA, which could signify a downtrend if the $6 level is not breached imminently.
Varying Strategies Amid Market Uncertainty
Given the current market conditions, traders are employing different strategies to navigate the uncertainty. While some are buying TON in hopes of it surpassing the $10 mark, others are waiting to see if the resistance at $6.25 will lead to another drop in price before re-entering the market. A failure to breach this resistance could see TON retesting its $5 support, making it a critical junction for the coin’s short-term outlook.
Conclusion
Toncoin’s recent price activity underscores its potential for recovery, but also highlights significant hurdles ahead. Resistance at $6.25 and declining network activity are major challenges that could impede further growth. Traders should closely monitor these factors along with technical indicators to make informed decisions. With the ongoing market volatility, any uptrend might be short-lived unless Toncoin sees a substantial increase in network activity and can surpass key resistance levels.
