Toncoin Shifts to Bearish Sentiment After Sharp Retracement to $7.20

Today, TON has had a significant pullback, and the current price of the token is $7.20, down 5.22%. Toncoin (TON) is at a crossroads as the bulls seek to break above the $7.67 overhead resistance level. Today’s steep decline comes after a recent recovery where TON reached a daily high of $7.72 before pulling back to the current price.

Toncoin Market Sentiment and Price Movement

The bulls have been able to hold the 50-day SMA at $6.83, which shows that there is a strong buying signal at lower price levels. This support has remained intact even after several bearish attempts to push the price down. At the moment, the bulls are trying to push the price above the immediate resistance of $7.67. If this level is breached successfully, TON could rally towards $8.29, a major resistance level. If the bulls are to continue with their performance, the next level of resistance could be at $10.

On the flip side, if TON cannot move past $7.67, it could test support at $6.60 when the price breaks the level and reverses. A break below this support could complete a head-and-shoulders pattern, which could lead to a decline towards the pattern target of $4.91. The first level of support on any pullback will be the 20-day Exponential Moving Average (EMA).

Technical Analysis Suggests a Bearish Market

The 4-hour chart shows that TON is still below the key EMAs, which supports the bearish outlook in the short term. The MACD indicator suggests a possible rebound as the MACD line is close to the signal line. The Relative Strength Index (RSI) at 47.43 is a neutral signal, which means that the bulls and the bears are equally balanced and there is no clear winner at the moment.

The social volume for TON has risen even after the price drop, which means that the token is still a trending topic in the crypto space. This could mean higher buying pressure if the overall market sentiment is positive as seen in the figure below.

The Long/Short ratio in different platforms especially those with ratios greater than 1.5 on OKX and top traders on Binance, shows that long positions dominate the market. This preference for long positions suggests that active traders remain bullish in the near term, despite recent setbacks.

Resistance and Support Levels

The first level of resistance to watch is at $7.67, then a more rigid resistance at $8.29. If these levels are violated, TON could aim at the psychological level of $10. On the other hand, the first support level to watch is at $6.60, the 50-day SMA is at $6.83. A break below these levels could lead to a deeper correction towards $4.91.