In This Post:
- Resistance at $6.25 limits TON’s rise.
- Low network activity hinders TON’s growth.
- Short-term indicators suggest a potential rally.
TON price has rebounded 22% from Monday’s decline, but it faces significant challenges. Here are two main issues affecting its growth.
Resistance at $6.25
TON price is moving toward $6 after defending support at $5. This shows fresh momentum. However, there is a significant hurdle at $6.25.
Blockchain data from IntoTheBlock shows that 475 addresses bought around 129,000 TON between $5 and $5.17. This strong support allowed buyers to push the price up.
Based on current momentum, TON could rise above $6. Traders are buying dips above $5 support. But the IOMAP model shows strong resistance at $6.25. About 1,060 addresses bought 1.64 million TON in this area. If these holders decide to sell, it will increase selling pressure. This could force TON to retest the $5 support.
Low Network Activity
Toncoin’s network activity, including new and active addresses, hasn’t changed much in the last 30 days. The number of addresses dropped to 194 on Monday, compared to 398 in the first week of July. Active addresses also fell to 532 from 733 in the same period.
This lack of activity means the network isn’t generating enough momentum to keep TON price moving up. Without more activity, it will be hard for Toncoin to sustain its recovery and reach higher prices.
Technical Indicators Suggest a Buy
Despite low activity, TON price recovered and is now above the 200-day Exponential Moving Average (EMA), which is at $5.16. The Money Flow Index (MFI) has also turned neutral, showing growing interest. Traders are willing to invest more in Toncoin.
If Toncoin retests and rebounds from the 200-day support, traders may take long positions. TON could then break resistance at $6 – $6.25 and aim for $8 and possibly $10.
Failing to break the $6 barrier, however, could delay this move. Traders might sell at the earliest sign of profit and buy again at the $5 support. The 20-day EMA crossing below the 50-day EMA on July 25 could also push the price down to a range between $3.5 and $4.
Looking Forward
TON price faces two main challenges: strong resistance at $6.25 and low network activity. These factors are preventing Toncoin from reaching higher levels. Traders should watch these key levels and indicators to make informed decisions. The market shows potential for a rally, but caution is advised.
