Toncoin (TON) price is falling due to correction fears and is expected to begin a recovery soon.
This is possible if TON holders make the most of this opportunity and try to add more TON to their wallets.
Toncoin Could Witness Recovery
Toncoin price was expected to rebound last week, but the price changed rapidly as it left the downward channel. TON fell but held around $5.2 and $5.4, which represents resistance levels.
This is likely to be changed by the investor if he or she decides to add more TON to his or her holdings. Altcoins are heating up due to recent events, according to the Market Value to Realized Ratio (MVRV) ratio.
MVRV ratio monitors investors’ profits and losses. A recovery could follow, as Toncoin’s 30-day MVRV is -13.22%, implying a loss. Historically, when TON experiences a -10% to -20% MVRV zone, this is referred to as an accumulation opportunity zone.
Accumulation will lead to a surge in demand, which will essentially cause prices to skyrocket.
Read more: What is Telegram Bot Coin?
The potentially growing interest is also evident in the changing market sentiment towards TON. Moving Average Convergence Divergence (MACD) is on the verge of hitting a bullish crossover. MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
According to this indicator, a potential bullish crossover is a sign that the market is paying attention to the value of the asset. When the price recovers and starts to bounce, the crossover confirms this.
TON Price Prediction: What happens after support?
Toncoin price trading at $5.2 is just below the resistance at $5.4 and a violation of this would confirm a potential bullish outcome. This is because $5.4 has been tested as important resistance several times in the past.
In the past few days, TON has not been able to break this barrier, but it has also managed to stop the decline. This resilience could be rewarded with investor support, which could potentially push Toncoin’s price up to $6.
Read more: What are the best altcoins to invest in in April 2024?
However, if the breach fails and TON eventually corrects, the $4.7 level could be tested as support. This important support has been tested in the past and losing it would invalidate optimism and widen losses for TON holders.
disclaimer
In accordance with Trust Project guidelines, this price analysis article is provided for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions may change without notice. Always do your own research and consult with a professional before making any financial decisions. Our Terms of Use, Privacy Policy and Disclaimer have been updated.