TONcoin Technical Analysis: TON Faces Downward Pressure Amid Whale Activity

TONcoin has been witnessing significant price fluctuations, currently stabilizing around the $6.54 mark after a recent dip. This price point represents a crucial juncture for the cryptocurrency, lying just above the key support level of $6.50.The TONcoin price experienced a notable decline, breaching several support zones recently. Notably, after peaking at an all-time high of $8.28, Toncoin has entered a bearish phase, with a series of lower highs on the daily chart indicating a loss of bullish momentum. Despite a potential minor bounce from the current levels, which could see prices briefly rally by 5% to 8%, the overall outlook remains bearish.

Influential “whales” have bought 670,000 TON tokens since mid-June leading to an altered market sentiment. However, with such holdings being usually seen as bullish, these could result in increased sell pressure under adverse conditions given the current market situation and high supply on centralized exchanges (approximately 5.3 million TON tokens). In case this happens, TON may test the downside over $5.90-$6.23 with a further drop to $5.17 if it fails to hold above.

Bearish Signals Dominate as Price Struggles to Find Footing

On daily chart intervals, downward pressure has been affecting TONcoin prices for quite some time now. The Moving Average Convergence Divergence (MACD) shows continued bearishness even as both MACD line and signal line dwell below zero thus implying more selling action in place.The histogram bars too have remained on negative side thereby suggesting bearishness.

The Average Daily Range (ADR) is low meaning that the range of each day’s trading is small at 0.22; therefore there have not been any big moves up or down from yesterday’s close. This lack of volatility, however, may make it hard to change the current downtrend.

The four-hour time frame can provide more insight into what is happening with TONcoin in the short-term. The Bollinger Bands are starting to squeeze price which often indicates that there could be a breakout coming out soon. Nonetheless, given what the daily chart says about bearishness one must remain cautious since it can break down further.

Stochastic RSI is oversold at 9.32 which implies a potential for either reversal or relief rallies but constant lower highs and lows show us that any bounce will attract sellers who want to take their position again.In this regard, bears might wish to re-enter the market should an opportunity like this arise.

Both daily and four-hour charts indicate a notable bearish sentiment in TONcoin now. Therefore, traders and investors alike should carefully watch for possible bounces off $6.50 support level.The likelihood of breaking below this key support zone would result in further weakness towards lower support levels.

Traders might consider short positions on failed tests of lower highs especially around the 4HR chart’s $6.72-6.87 resistance zones due to current technical setup. However, caution is advised considering overall market conditions and potential volume shifts that can affect price moves during any trades.