The token price drops 6%, but investors are buying, suggesting a possible short-term rebound. Despite a turbulent present, optimism about a rise soon remains.
The outlook for Toncoin (TON) turns negative as its price eases evenly after a bearish signal appeared on the daily chart over the weekend. Currently trading at $5.51, TON is down 6%, indicating the impact of the negative sentiment. That red extends over the 16.6% in the last month.
However, despite the downward trend, market participants are buying the altcoin, this is likely because they anticipate a reversal of the negative trend. This shows optimism among investors, even in the face of bearish technical signals. Whether this buying pressure will be enough to stop the decline and reverse the trend remains to be seen.
Death cross puts Toncoin at risk
Analysis of Toncoin price charts on the daily chart revealed the appearance of a death cross on September 13. This bearish signal typically indicates a downward momentum, as it occurs when the short-term 50-day moving average crosses below the long-term 200-day moving average.
It emerged shortly after the altcoin hit a seven-day high of $5.77, marking a possible shift in market sentiment towards a more negative outlook. Despite the recent price drop, market participants remain optimistic about reversing the bearish trend for Toncoin (TON).
Interestingly, the death cross sign has not discouraged accumulation. Instead, accumulation has intensified, as reflected by the rise in the Chaikin Money Flow (CMF), which is currently at 0.05 and trending upwards.
This suggests that selling pressure may not being as strong as it seemswith TON buyers stepping in to absorb the selling, possibly leading to a short-term price bounce.
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Further supporting this view is the Moving Average Convergence/Divergence (MACD) indicator, which measures trend direction and potential price reversals.
In technical analysis, so far, the MACD line of TON (blue) isis above the signal line (orange) and is approaching the zero line. This setup indicates strong buying pressure and sustained optimism among TON traders, despite the recent price drop.
Source: Ambito
