- Toncoin continues to cool after a 180% rally in 2024
- TON seemed massively undervalued, but has lost key support levels
Tonmint [TON] may be one of the best performing cryptocurrencies of 2024. On a YTD (year-to-date) basis, TON was up 186% at the time of writing, from $2 to over $8, even eclipsing Bitcoin. [BTC] 61%.
However, after retesting above $8 in early July, Toncoin [TON] has wiped out some of its gains and fallen below $7 on the charts.
The weak attempt to regain the $7 level at the time of writing means that +15% losses could widen further. This will open up even more discounted buying for speculators looking for re-entry.
Are there likely to be more TON bargains under $7?
Source: TON/USDT, TradingView
Overall, the market saw a relief in mid-week Bitcoin [BTC] retested the $68k level. This feat took place just a few hours before Trump’s speech at the Bitcoin 2024 conference. This may be coupled with the high bullish expectations of the July 31 Fed rate decision.
However, TON looked weak on the price chart despite possible bullish momentum on the macro front. The retracement slid below the 20-day SMA (Simple Moving Average) and the 23.6% Fib retracement level. So TON has lost two crucial short-term support levels.
That means short sellers could drag a TON into the two highlighted daily bullish order blocks (white and cyan), which coincided with the $5 and $6 levels. So these two could be important demand levels to monitor if TON fails to rise past $7.
Moreover, the below-average values of the RSI (Relative Strength Index) and OBV (On Balance Volume) also created bearish sentiments for TON in the spot market.
TON – Underrated?
Source: Santiment
According to Santiment’s MVRV (Market Value Realized Value), the negative value (-7%) suggested that TON was undervalued. This metric tracks the average cost of the token, with press time suggesting TON would be a great buy.
Read Tonmint [TON] Price prediction for 2024-2025
However, there did not appear to be a strong turnaround in network activity, as evidenced by a slight increase in the number of daily active addresses. Finally, at the time of writing, overall market sentiment had not yet strengthened to indicate enough of a bullish reversal, as the weighted sentiment was neutral.
Collectively, the above readings suggested that TON’s press-time position was attractive to speculative bulls, especially if it falls to $6 or $5.
However, a sharp change in price by BTC after Trump’s speech or the Fed’s interest rate decision could delay TON’s recovery in early August.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.