Toncoin Faces Imminent Price Correction Amid Technical Indicators Signaling Bearish Momentum

Toncoin has been consolidating between $5.96 and $5.37, with technical indicators suggesting a potential price correction. Despite holders’ confidence, the token could see a decline if it fails to break resistance at $5.96.

Toncoin price has remained relatively stable, consolidating between $5.96 and $5.37 without being significantly impacted by broader market fluctuations. However, while a breakout from this consolidation range is possible, technical indicators are signaling a potential correction for the asset.

Long-Term Holders’ Confidence May Signal Trouble Ahead

Toncoin’s long-term holders (LTH) have shown strong confidence in the token, with minimal movement in their holdings over the past month. This is further supported by an uptick in the Mean Coin Age (MCA), which measures the average age of coins sitting in wallets. A rising MCA generally indicates that holders are refraining from selling, which could be a sign of confidence in the asset.

However, historical patterns show that an increase in MCA has often been followed by a price drop for Toncoin. The lack of movement from long-term holders could suggest that bullish momentum is weakening, which could lead to a price correction in the near future.

Technical Indicators Suggest Price Reversal

Looking at technical analysis, several indicators point to a potential downturn for Toncoin. The Moving Average Convergence Divergence (MACD) is nearing a double-top divergence, which typically signals an impending price reversal. This divergence, along with the higher high forming in the price, suggests that the bullish momentum may soon reach its peak.

A test of the $5.96 resistance level will be critical. If Toncoin fails to break through this level, it will confirm the double-top formation, further supporting a bearish outlook. The divergence between price action and the MACD indicator points to a likely price correction in the coming days, increasing the risk of a sharp decline.

Toncoin’s Price Forecast: Will Support Hold?

As of now, Toncoin is trading at $5.80, close to the $5.96 resistance level. While it may test this level, a breakout seems unlikely given the current technical setup. A rejection at $5.96 could lead to a retracement back to the $5.37 support zone.

Should bearish momentum intensify, there is a possibility that Toncoin could drop further to the $4.86 level. However, if bearish cues remain mild, the token may be able to hold above $5.37, avoiding a deeper correction.

On the bullish side, if optimism grows as Q4 progresses, Toncoin could break through its current consolidation range. A successful breach of $5.96 could push the token toward $6.36, potentially invalidating the bearish scenario and igniting a new rally.

Conclusion

While Toncoin has shown stability, technical indicators suggest that the asset is at risk of a price correction. The next few days will be critical, with investors watching closely to see whether the token can break through the $5.96 resistance level or if it will face a sharper decline.

Our creator. creates amazing NFT collections! 
Support the editors - Bitcoin_Man (ETH) / Bitcoin_Man (TON)

Pi Network (Guide)is a new digital currency developed by Stanford PhDs with over 55 million participants worldwide. To get your Pi, follow this link https://minepi.com/Tsybko and use my username (Tsybko) as the invite code.

Binance: Use this link to sign up and get $100 free and 10% off your first months Binance Futures fees (Terms and Conditions).

Bitget: Use this link Use the Rewards Center and win up to 5027 USDT!(Review)

Bybit: Use this link (all possible discounts on commissions and bonuses up to $30,030 included) If you register through the application, then at the time of registration simply enter in the reference: WB8XZ4 - (manual)