Market dynamics have been active of late, with Toncoin's price taking back 3% over the previous 48 hours to now exchange at $7.30 on July 19. This is in line with a generally increasing user base that puts Toncoin on the verge of retesting the $8 level. Over the past 24 hours, the price of Toncoin has recorded a drop of 1.37%, from approximately $7.32 to $7.18. The movement seems like only a small correction, possibly because of the 28.92% fall in trading volumes.
A decline in trading activity suggests that the price decrease is not under heavy distribution most of the time; it would therefore imply that the market sentiment toward bearish action for that period wouldn't be very strong. On the other hand, the market capitalization for Toncoin has closely mirrored the price decrease and is down currently by 1.36%. This correlation suggests that the circulating supply was less affected by the change in token price.
The recent price performance of Toncoin has been resilient over the past few weeks. Already the new week had shown a 7.48% correction, sending Toncoin to $7.09 on July 17, but within two days, it was up again at $7.30. Such movement is an indication that there remains an overall bullish sentiment among traders and investors toward this project, which curtailed such a strong move from turning bearish.
TON has in fact been one of the best-performing crypto assets in the Layer-1 blockchain sector so far this year, driven by the continuous growth and adoption of the network. The coin struck the level of $8.28 as its ATH last month.
Besides, the $8 level also came into existence as an intense psychological resistance price for the token. The recent recovery indicates that bulls are attempting to push the price towards this critical resistance area.
One of the central reasons for which Toncoin has been performing great lately is the significant expansion, which the coin's user base witnessed.
On-chain data, however, shows that the number of actively funded wallet addresses holding Toncoin surged to over 25,220 from January's 8,460 by July 19.
This 200% rise underscores increased interest and acceptance of the Toncoin network. The inflow of new users and creation of funded wallets are looked at as bullish indicators that reflect increased investors' activity and potential transaction activities within the ecosystem. Strategic partnerships and innovative product launches within GameFi and social trading sectors are both the reasons for this increased user base.
Toncoin, however, has a bullish short-term outlook. Technical analysis shows that the $7.71 level is now the key resistance level to watch over the short term. The Parabolic SAR indicator is trading at $7.71. The Directional Movement Index (DMI) also confirms the bullish view. The +DI line (blue) is above the -DI line (red), which shows that buyers are currently winning.
The ADX line (orange) at 23.9639 points to a moderately strong trend. Continued strength in the ADX would further support the bullish momentum. Immediate support is located at $7.21. Holding will increase the bullish setup. On the flip side, a downside break below $7.00 could negate the current bullish wave and open doors for further losses.