TON Struggles with Resistance, Drops 3.26% Amid Bear Rally

TON Struggles with Resistance, Drops 3.26% Amid Bear Rally

Toncoin (TON) price has been in a bearish rally in the last 24 hours after failing to breach the intra-day high of $6.44. At press time, TON was trading at $6.21, a 3.26% decline from the resistance level. 

During the dip, TON's market capitalization and 24-hour trading volume dipped by 3.32% and 35.18% respectively to $21,578,331,604 and $209,928,025.

TON/USD 24-hour price chart (source: CoinMarketCap)
TON/USD 24-hour price chart (source: CoinMarketCap)

Market Response to Resistance at Key Levels

Toncoin's inability to surpass the resistance at $6.44 has led to a decrease in both market capitalization and trading volume, indicating a lack of buyer momentum at higher price levels. 

As a result, TON has struggled to maintain upward traction, contributing to the overall bearish sentiment in the market. This resistance point has proved pivotal in shaping the short-term market dynamics as investors reassess their positions in anticipation of future price movements.

Technical Indicators Suggest Continued Bearish Pressure

Technical analysis of the TON/USDT pair shows continued bearish pressure. The Simple Moving Average (SMA) on the 1-day chart has acted as a formidable barrier, preventing the price from establishing a stronger foothold above the $6.30 mark. 

Moreover, the Relative Strength Index (RSI), which measures the magnitude of recent price changes to evaluate overbought or oversold conditions, remains near the midpoint. This indicates a lack of significant momentum in either direction, further solidifying the uncertain outlook for Toncoin. Concurrently, the Moving Average Convergence Divergence (MACD) shifts below its signal line with a rating of -0.06 suggesting that the bearish momentum is strengthening. 

TON/USD 4-hour price chart (source: TradingView)
TON/USD 4-hour price chart (source: TradingView)

Looking forward, Toncoin faces significant challenges if it continues to operate under bearish pressure. The next critical support level lies at $6.00. A breach below this point could trigger further sell-offs, pushing the price towards the $5.45 support level. This scenario depends heavily on broader market trends and investor sentiment in the coming days. 

Conversely, should Toncoin manage to stabilize and reclaim higher levels, it could attempt to retest resistance near $6.44. This would require a substantial shift in market dynamics, including an influx of buying pressure.

TON Derivatives Data

The Toncoin derivatives market is currently witnessing some notable shifts, indicated by key trading metrics. The trading volume has seen a substantial reduction, dropping by 42.55% to $205.59 million. This significant decline in volume could be pointing to a decrease in trader interest or activity, potentially driven by recent price declines or prevailing market uncertainty. 

Alongside this, open interest has also decreased slightly by 1.40%, totaling $171.59 million. This decline in both volume and open interest suggests a cooling off of market momentum, as fewer traders are opening new positions or opting to close existing ones, indicating a possible bearish sentiment settling in.

In the "Rekt Analysis," which examines losses due to liquidated positions over various time frames, a pattern emerges where losses are primarily occurring on the long side. In the last hour, long positions faced losses of $93.28K, a stark contrast to the relatively minor $286.08 lost by short positions. 

TON Derivatives
TON Derivatives

This trend continues into the four-hour frame, with longs losing $98.36K compared to shorts losing $495.12. The disparity grows even more significant over 12 hours, with long positions facing substantial losses of $298.57K against a mere $5.07K on the short side. Over the last 24 hours, the cumulative losses for longs amounted to $449.39K, while shorts experienced considerably lower losses at $19.61K. This analysis suggests a challenging environment for long traders, hinting at a market sentiment that may be increasingly bearish. 

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