TON Encounters Resistance at $6.5 Amid Market Fluctuations

TON Encounters Resistance at $6.5 Amid Market Fluctuations

Despite a robust start to May, Toncoin (TON) has faced a significant pullback after hitting a resistance level at $7.50. The cryptocurrency's attempt to keep up with the broader market rally faltered, leading to a sharp 17% drop to its current trading price of around $6.46. 

The day's trading started on a weaker note, dipping to a low of $6.40 before experiencing a mid-day recovery. However, resistance near $6.50 proved strong, and the price has begun to taper off again, showing signs of struggle to maintain upward momentum.

Surge in Network Activity Suggests Growing Interest

Despite the price setbacks, Toncoin has seen a dramatic increase in network engagement. Data from Santiment indicates a 500% increase in daily active addresses since March, with a notable 100% rise just in the last month. This surge in activity points to growing interest and adoption within the TON network, which could potentially support future upward price movements if the trend persists.

The daily chart analysis suggests that Toncoin may be forming a double-top pattern, indicating possible increased selling pressure. If the bearish momentum continues, TON could test the support level at $5.5. A breach below this point might trigger a correction towards $4.60, marking a significant downturn for the cryptocurrency.

Toncoin Price Struggles to Sustain Above Key Resistance Levels

Toncoin price analysis shows a struggle to sustain its upward movement, as seen on the 4-hour TON/USD chart. Thie recent pullback comes after a notable peak near the $6.70 resistance level. The Bollinger Bands suggest that Toncoin is trading within a relatively tight range, with the current price hovering near the lower band, which may indicate a potential oversold condition that could attract buying interest.

Technical indicators on the TON/USD chart signal caution. The Stochastic RSI presents a high reading of 76.99, approaching overbought territory, which may suggest a potential pullback or stabilization is imminent. However, the MACD indicates a bullish crossover as the MACD line overtakes the signal line, supporting the possibility of further upward movement. 

This technical outlook suggests that Toncoin could face continued resistance near the $6.70 level. If unable to maintain support around $6.44, the next key support lies at $6.19. Traders should watch these levels closely, as a break below support could lead to increased selling pressure, while overcoming the current resistance may reignite bullish momentum.

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