Can Toncoin Maintain Its Price Above $5 Amid Bearish Trends?

The price of Toncoin (TON) has largely remained stable at $5 throughout most of the week. This pattern stands in contrast to earlier predictions that suggested the altcoin would experience much higher trading values.

Despite the potential for TON to exceed current price levels, recent information indicates that it may require some time, as a brief downturn could occur first. Here’s an overview.

Bearish Signals for Toncoin

A significant factor contributing to the possibility of a further drop in Toncoin’s price is the Daily Active Addresses (DAA) divergence. This metric assesses whether the price movement of an asset aligns with user engagement on its blockchain.

When both the price and active addresses increase, it is seen as a buy signal, indicating that the cryptocurrency’s value may rise. In contrast, a decrease in user activity signals potential price weakness.

According to data from Santiment, TON’s DAA has decreased by 138.59% over the last 24 hours. This substantial decline implies that a considerable number of active users who traded the token yesterday have withdrawn, suggesting a bearish outlook for the price.

Read more: What Are Telegram Bot Coins?

Another contributing factor to this downward trend is Network Growth, which measures the rate at which new users are being adopted. An increase in network growth signifies a rise in the number of new addresses that have successfully completed their initial transactions, indicating growing traction within the network. Conversely, a decline in network growth points to a slowdown in this activity.

In terms of price fluctuations, an increase in this metric can often foreshadow a significant price increase. However, in TON’s situation, the metric has seen a decrease, suggesting that TON might undergo a short-term price drop.

TON Price Prediction: Postponed Surge to $7

Analysis of the TON/USD chart indicates a considerable drop in the Chaikin Money Flow (CMF). The primary function of this indicator is to distinguish between accumulation and distribution periods.

When the CMF is above the zero line, it implies a net accumulation of the cryptocurrency. Conversely, a reading below the zero line indicates that there is more distribution than accumulation.

As illustrated below, the CMF has fallen to -0.22, indicating that Toncoin is experiencing significant selling pressure. If this trend persists, TON’s price could drop below the $5.05 support level and potentially reach $4.69.

Read more: 6 Best Toncoin (TON) Wallets in 2024

If the bearish momentum subsides, bulls may seize this opportunity to gain ground. In that case, buying pressure could increase, pushing TON’s price toward $6 or potentially as high as $7.