- Toncoin will likely fall closer to $5.
- The on-chain metrics gave a buy signal, but conditions might be too risky to rely on them.
Tonmint [TON] maintained its bearish trajectory and fell below the $6 level, as expected in an earlier report. Technical indicators showed strong selling pressure. The Fibonacci retracement levels could help the bullish cause.
With Bitcoin [BTC] The crypto market is struggling around the $60,000 mark and does not have a bullish outlook in the short term. There could be a surge on Monday to chase short liquidation levels, and the downtrend could resume after that.
The $5.8 and $5.36 levels are under scrutiny
Source: TON/USDT on TradingView
The daily market structure was still bearish. There was a significantly large difference in fair value around the $6.5 level. A price increase to chase liquidation levels could be rejected from this area.
The MACD trended downward throughout July and the CMF fell to a four-month low. This showed extreme selling pressure and consistent bearish momentum for TON since the rejection at $7.7.
The 78.6% retracement level at $5.36 could be visited next week. Swing traders would be hopeful that the downtrend will fade at that point and the market will present a buying opportunity.
Should traders wait for further price drops, or buy a TON right away?
Despite the price drop over the past month, the average coin age has increased. This was a sign of accumulation within the network.
Meanwhile, the MVRV ratio fell to a low not seen since early May. Short-term holders suffered big losses and the token could be undervalued.
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Until recently, the weighted social sentiment was positive, which underlined the faith. It provided a good argument for traders to rely on the $5.86 support level, the 61.8% retracement level, but buying at these levels could be risky.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer.