Toncoin is yet to register any notable price improvements in the last five days. The downtrend worsened during the current intraday session as the crypto market suffered massive losses. The global cryptocurrency market cap is down by almost 2%.
Toncoin’s trading volume increased by over 50% amidst the bear takeover. However, prices show that the bulk of the trading involved funds leaving the asset. The latest declines come roughly three days after the cryptocurrency reported a massive increase in active addresses.
The ecosystem also saw increased activities, with more tokens being introduced to the market almost daily.
On July 15, TON peaked at $7.64 after it started trading at $7.42. The asset also closed at the high, sparking speculation of an attempt at $8. However, this did not play out as intended, as the cryptocurrency started a downtrend that saw it lose a huge chunk of its value.
Toncoin Lost 14%
Since the current price decline started, the altcoin has lost over 14%. One of the biggest happened on July 15 when it retraced from $7.63 to $7.26, losing almost 5%. it lost almost 3% the next as rebound was underway.
Following two days of small gains, it has failed to register any significant gains, losing over 10%. Will it continue with the losses?
Indicators are Still Bearish
A look at indicators suggests that the downtrend may continue. For example, all major trend and volume metrics are printing sell signals. One such is the relative strength index. It has been on the decline since the asset’s failure to sustain surge above $8.
The trend is ongoing, and the cryptocurrency experiences massive excess supply. The drop also indicates that the bulls are yet to soak up the supply, resulting in consistent price dips.
The moving average convergence divergence has also seen massive downhill movement. Both the 12-day EMA and 26-day EMA are yet to recover as prices continue to slum. The metric has since been negative, hinting at the continuation of the bearish trend.
Despite the coin’s current situation, there is a glimmer of hope. RSI recently dropped to critical support.
Key Levels to Watch
The coin has maintained trading above $6.50 for the most part of the last three months. However, this changed on one occasion when the coin dipped below the mark. It started trading at $7.12 and retraced to a low of $6.38 but rebounded after that brief decline
The most recent drop to this mark although establishes as a critical support. Nonetheless, this means that the asset is closer to flipping this critical level. According to the RSI reading, it may hold as traders expect further price increases in the coming days.
However, the relative strength index does not remove the possibilities of the asset briefly dropping below the highlighted support.
It is also worth noting that the $6.50 support could also serve as a launchpad for further surges. One such events was on June 26 when TON surged from $6.28 to a high of $7 but retraced and close with gains exceeding 8%.
In the event of such a repeat, the coin will look to retest $7 in the coming days if market conditions improve.
Aside from Toncoin, WIF is also struggling to recover from a three-day downtrend. It briefly dipped to a low of $2.32 after it started trading at $2.50. However, it is yet to register any significant gains in the last 24 hours.
The asset is at a crossroads as indicators suggest a possible continuation of the downtrend. One such is the moving average convergence divergence. The metric’s 12-day EMA is still on the downtrend with the 26-day EMA closing in. With the ongoing bearish convergence, a divergence will result in further price declines.
This may place the coin at risk of retracing as low as $2.10 in the coming days.
