Toncoin(TON)pricehasdecreasedby10%overthelast30daysastheTelegram-nativecryptocurrencycontinuestoexperiencetoughtimes.Duringthatperiod,Toncoin’slosswasafallfromapeakof$5.54to$4.76.
However,on-chainanalysisshowsthatTONmighthavereachedastagewherethealtcoinmightnotexperienceadeepercorrection
ToncoinHitsStrongSupportLevel
ThemajorindicatorsuggestingthatToncoin’slosscouldshrinkistheIn/OutofMoneyAroundPrice(IOMAP).TheIOMAPclassifiesaddressesbasedonthosemakingmoneyatthecurrentprice,thoseoutofmoney,andthebreakevenpoint.
Typically,whentheon-chaincostbasisislowerthanthecurrentprice,thenanaddressisinprofit.Ontheotherhand,ifthecurrentvalueishigherthantheaveragepurchaseprice,thenanaddressisoutofthemoney.
Withthisdata,traderscanspotsupportandresistance.Whentheclusterofvolumeishigherinthepricerange,thesupportorresistanceintheregionisstrong.ForToncoin,about2.44millionaddressesboughtabout600milliontokensbetween$4.69and$4.84andarecurrentlyholdingunrealizedprofits.
ToncoinIn/OutofMoneyAroundPrice.Source:IntoTheBlock
Thisvolumeexceedsthatofholdersfacinglossesbetween$4.84and$5.58.Therefore,ifbuyingpressureintensifies,TON’spricecouldsurgeto$5.58.
Additionally,theMoneyFlowIndex(MFI)supportsthispotentialbounce.Thisoscillatorgaugesbuyingandsellingpressure,withrisingMFIvaluesindicatingstrongerbuyinginterestanddecliningvaluesreflectingincreasedsellingpressure.
Onthedailychart,theMFIhasrecentlycrossedabovethe50.00midpoint.ThisshiftsignalsthatmarketparticipantsareaccumulatingmoreToncoin,whichcouldleadtoapriceincrease.
ToncoinMoneyFlowIndex.Source:Santiment
TONPricePrediction:BullsTarget$5.78
AnotherlookatthedailyTON/USDchartshowsthatbullshaveformedstrongsupportat$4.67.Thissupportwasvitaltothealtcoin’s24%rallyinSeptember,whichreducedToncoin’slossandhelpedithit$5.80.
Thistime,itcouldbethesameplaybookrepeatingitself.Ifthatisthecase,thencryptocurrency’svaluemightsoonexperienceasignificantbounce.Shouldthatbethecase,thenTONcouldclimbto$5.78intheshortterm.
ToncoinDailyAnalysis.Source:TradingView
Ontheotherhand,bearishpressuremightrenderthisthesisnullandvoid.Therefore,ifbullslosetheirguardindefendingthe$4.76support,thispredictioncouldbeinvalidated,andTONcoulddeclineto$4.45.
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