The price of Toncoin (TON) may rise in the short term due to changes in investor sentiment
Investors will be looking to support the potential rise in Toncoin (TON) value, allowing them to recoup recent losses.
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Toncoin: Things Are Taking a Bullish Turn Again
After several weeks of falling prices, TON holders seem to be preparing for a potential rise, as evidenced by their current behavior patterns.
The on-chain metric Mean coin age measures the level of trading sentiment among long-term investors by calculating the average number of days that circulating coins spent at current addresses. The growth of this indicator suggests that investors prefer to hold the asset.
A decline in the rate, on the other hand, means that investors are moving their assets, and this is considered a sign of low confidence, which is what has been happening with the altcoin over the past couple of days. However, the metric is now rising, reflecting increased bullish sentiment.
Read more: What is TON. Review of the project and cryptocurrency Toncoin
The price and daily active addresses (DAA) divergence indicator also points to a similar scenario. Divergence occurs when the price of a cryptocurrency and its DAA move in opposite directions, indicating a potential discrepancy between market valuation and network usage.
At the moment, this metric is giving a buy signal, demonstrating an increase in price and an increase in the number of network participants. If investors start accumulating TON, Toncoin could soon rise.
Read also the instructions: How to buy Toncoin (TON) for rubles: instructions
TON forecast: should we expect a rally?
The price has been moving downward within the descending channel over the past few days. Looking at the changing investor sentiment, it can be assumed that TON may break out of this channel.
A potential breakout of its upper bound would mean the possibility of a rally of almost 18%. This would mean that a break of the $7.0 resistance line could send the altcoin towards the $7.8 target.
However, if Toncoin fails to take the barrier at $5.9, the price may fall to the support level of $5.4. The loss of this line could negate the bullish scenario and lead to a further fall to $5.2.
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