Toncoin price could be on the verge of crashing 50% as concerns mount over the increasing bearish sentiment around the asset. The most notable observation is from an analyst who predicts that the TON price could be headed for a crash because the bearish volume has increased.
Regardless of the bearish prediction, the TON price is up 1.2% in the last 24 hours and is trading at $5. This increase in price could be attributed to Bitcoin’s recent momentum, which saw it surge back above $68,000. Will the Toncoin crash 50% amid the overall crypto market recovery?
Spike in Selling Pressure Confirms Toncoin Price Crash
Expert crypto analyst Alana Santana has predicted that the TON price will experience a 50% decline. “We don’t need to speculate on price direction. The chart confirms a strong downtrend and bearish bias,” Santana shares, noting that Toncoin’s bearish volume spiked to a 3-week high on its TON/USDT pair.
Reflecting on a strategy of minimizing losses, Santana said he would “sell as much as possible,” even though he is a long-term investor. He would buy again at lower prices. He projected that the TON price could drop by as much as 50% to $2 and warned investors to sell before the drop.
Meanwhile, data from IntoTheBlock also suggests that Toncoin is not doing well. For instance, only 3% of TON holders have held the coin for one year, which indicates an extremely low level of investor confidence in the project. This could be because only 12% of investors are in profit, with 5% at breakeven and a whopping 83% out of the money. This number is about to increase if the Toncoin price falls lower.
Toncoin’s meagre returns, as the entire crypto market jumps 0.5% to a $2.431 trillion market cap, can be attributed to the asset’s 21% correlation with Bitcoin. This correlation is low, meaning that the TON price is likely to stagnate as Bitcoin’s price rises. Ton blockchain whale concentration is also high at 91%, which is not good for price.
TON Price Analysis: Will Toncoin Crash 50%?
The chances of a TON price crash to $2 are not out of the realm of possibility. However, a few key support levels could hold up the price, even helping the Toncoin price bounce back higher.
The first is $4.43, which also coincides with the 61.8% Fibonacci retracement level. Below this, Toncoin’s price would find further support around the 20-day exponential moving average ($3.89). And below that, TON would drop to $2.6. This would comprise a 50% crash from the current price.
On the flip side, if the bulls gain the upper hand and push the price higher from the current price, TON would find resistance around the $5.42 — 5.92 range as it coincides with the 21 and 50 EMA. Beyond that, the price would surge back to an all-time high and toward $12.24
Is There A Bullish Scenario For Toncoin?
Currently, the market sentiment for TON is overwhelmingly bearish. Traders are neutral to bearish, while investors are concerned their bags could sink further into losses if the Toncoin price falls lower. However, the $4.43 – $5 support level presents robust support.
Additionally, the Coinglass 7-day liquidation map data shows that the heaviest leverage longs lie between $4.67 and $4.85. This range represents the current immediate support level.
Besides that, the 0.618 Fibonacci retracement level is popular for being a strong support level on which prices initiate a bullish reversal.
The post Will Toncoin Price Crash 50% as Bearish Volume Hits 3-Week High? appeared first on CoinGape.
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