The most recent market data show that toncoin (TON) has become bitcoin’s clown coin.
The 90-day percent return has turned negative, more than 20%. The downturn follows a recent precipitous price drop that has struck fear in investors’ hearts regarding the asset’s wider mood.
Some market analysts say that the current reading indicates many investors who entered the market in the last three months are reporting losses.
This decline was also part of a weak period for Toncoin but also included a view to the historical context.
Historically negative returns have often become troughs for accumulation opportunities.
Historical Patterns Indicate Potential Accumulation Zones
The history suggests that when there are negative percent returns of 90 days on TON coin, it signifies a strong recovery phase.
During the 2022 bear market, this metric hit -61% as the lowest recorded period.
However, the current amount of -21% is far less than such an extreme, so the market sentiment is still cautious.
It is vital to understand that such trends as crypto markets are cyclical.
Those who bought before and elsewhere at such dips have always benefited from subsequent price recoveries.
In the past, long-term investors who dollar costs average (DCA) have considered these bubbles opportunities to acquire assets at a discount price.
But, in these periods, the bearish sentiment associated with them does underline the need to take a careful view of the market before deciding upon an investment.
With the cryptocurrency market as volatile as the coin is, historically, all that is helpful is a reminder of the past; it’s not a guarantee for the future.
The time horizon and risk tolerance of prospective Toncoin investors will dictate whether the risk-reward equation works in their favor.
Adoption and ecosystem growth will drive many price actions. If Telegram, the platform historically linked to Toncoin, continues adding blockchain features and expanding on crypto-related features, it could increase investor sentiment.
On the other hand, unless the broader market makes a bullish move soon, even strong fundamentals will not be sufficient to bring a bullish reversal until the market recovers.
TON Coin Technical Analysis: Key Levels and Indicators
The 4-hour chart shows that Toncoin’s price action has continued to show weakness; currently (as of writing), Toncoin trades around $3.85.
The price is being held down by the 50 and 100-period Exponential Moving Average (EMA), at $4.25 and $4.57 respectively.
If these levels aren’t reclaimed, it is a bearish short-term look. Typically, moving averages behave like dynamic support or resistance, and since TON is currently trading beneath them, bears have a clean field to play.
Liquidity grabs would also be indicated by the sharp drop to lows of around $2.80 before a modest recovery.
So, if the price dipped temporarily lower to clear the stop losses, that is what has occurred.
Furthermore, a reduced buying pressure is also indicated by the Volume Oscillator indicator, which also shows a 34% decline.
If Toncoin breaks through the $3.80 support, perhaps retesting lower levels will be necessary.
The post TON Coin: Bearish Sentiment Or Buy Opportunity? appeared first on The Coin Republic.
The Coin Republic – Read More