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Rising profit-taking threatens Toncoin's path to price recovery

GrafaGrafa2024/09/09 00:45
By:Liezl Gambe

Toncoin (CRYPTO:TON) has experienced a modest price increase of 2% in the last 24 hours, reaching $4.72.

However, the cryptocurrency's upward momentum faces challenges as profit-taking intensifies, putting its recovery at risk.

Current on-chain data indicates that TON could either continue its climb toward $5.25 or face a potential drop to $4.47 if selling pressure persists.

According to analytics firm Santiment, the ratio of on-chain transaction volume in profit versus loss for Toncoin has hit its highest level since February.

This ratio measures the total amount of tokens moved at a profit or loss, providing insights into market sentiment.

A spike in this metric typically suggests that investors are taking profits, which could hinder further price gains.

Conversely, a decline would suggest that investors are holding onto their assets, indicating potential price stability.

The "Bulls and Bears" indicator, which tracks whether wallets trading 1% of the total volume are buying (bulls) or selling (bears), shows a rise in bearish sentiment.

More bears than bulls often suggest a potential decline in price.

For Toncoin, this increased selling activity implies that the recent uptrend might be losing steam, and a bearish shift could be imminent.

The Stochastic Relative Strength Index (Stoch RSI) adds another layer of caution to Toncoin's outlook.

The Stoch RSI, which measures the momentum of recent price changes, shows that TON is currently below the neutral line.

This indicates that the asset may be overbought and could face a correction.

If the bearish momentum continues, TON could fall to support levels at $4.69 or even $4.47.

However, there is still a possibility for Toncoin to bounce back.

If profit-taking slows down, TON's price could stabilise and gradually move upwards, targeting $5.25.

Market dynamics will play a crucial role in determining the next direction for Toncoin, as traders watch closely for any shifts in buying and selling pressure.

Toncoin's price remains at a critical juncture.

While the potential for further gains exists, the increased profit-taking and bearish signals suggest that investors should proceed with caution.

The coming days will be crucial in determining whether Toncoin can maintain its recovery trajectory or face a deeper correction.

At the time of reporting, the Toncoin (TON) price was $4.94.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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