The Toncoin price recorded a slight loss over the past 24 hours to trade at $7.39 at press time.
This recent loss has pushed TON’s monthly performance deeper into the red zone. As a result, the altcoin is down more than 7% over the past 30 days.
The Toncoin Price Loses a Key Support Level
4-hour chart for TON/USDT (Source: TradingView)
The Toncoin price broke below the key support level at $7.430 over the past 24 hours and is currently still trading below this mark. What’s more, the crypto has also dipped to under the 9 and 20 Exponential Moving Average (EMA) lines.
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Now, TON is at risk of dropping to the next crucial support level at $7.205 in the coming 12 hours. In an extremely bearish situation, the altcoin could plunge to as low as $6.935 in the short term.
However, the Toncoin price reclaiming the $7.430 support within the next 8 hours could invalidate the bearish thesis. A 4-hour candle close higher than this threshold might instead be seen as a long entry by traders. With this potential buy volume, TON could rise to $7.715 in the following 24 hours.
Bearish Technical Signs Start To Emerge
Technical indicators on TON’s 4-hour chart warn that the crypto’s price might drop through the course of the next trading day. In addition to the Toncoin price falling below the 9 and 20 EMAs, the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators are showing negative signs as well.
Recently, the MACD line broke below the MACD Signal line. Traders usually see this technical event as an indication that a crypto has entered a short-term bearish cycle.
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Meanwhile, the RSI line has bearishly crossed its Simple Moving Average (SMA) line on the 4-hour chart and has also fallen to below the crucial 50 benchmark. This suggests that sellers have gained the upper hand against buyers on the altcoin’s charts.
If these technical signs are validated, the Toncoin price could fall below the $7.205 support level soon as well.
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