A Possible Downtrend in Gaming? TON Struggles As Price Drops Below $7.7
TON experienced a dramatic price change, falling below $7.7 three days after reaching an all-time high of $8.2. This sudden drop caught the attention of investors and market analysts, raising concerns and sparking discussions about the possible implications of this sharp volatility.
It also follows a period of great volatility and highlights the unpredictable nature of the cryptocurrency market. Since the price of TON is highly volatile, it is important to examine the factors that contribute to this decline and assess what this may mean for the future of TON and its investors.
This article examines recent price movements and the possible consequences of TON’s sudden drop after setting a record high. As of the time of writing, TON has a market capitalization of more than 18 billion dollars, a trading volume of more than 472 million dollars, and a price decrease of 4.03%, trading at about $7.3 in the last 24 hours. Despite a 5.77% drop in market capitalization, TON’s trading volume increased by 40.90%.
Market Dynamics and Recent TON Price Movements
On the 4-hour chart, TON is currently trying to break below the 100-day Simple Moving Average (SMA) after it successfully breached the $7.7 support mark.
A careful examination of the 4-hour Composite Trend Oscillator indicator suggests that TON may be actively moving as a signal line and the SMA of the indicator is trying to cross below the zero line.
Meanwhile, on the 1-day chart, the price of TON is currently falling to the support mark of $6.7. It can be noted here that after TON hit a high of $8.2, the crypto asset has been falling with strong bearish candlesticks.
In addition, the signal line and SMA of the Composite trend oscillator indicator on the 1-day chart are trending now in the overbought phase, with the signal line trying to cross below the SMA, indicating that the bearish movement may be on the upside.
So from the 4-hour and 1-day price actions and the construction of the indicator used for this analysis, it can be suggested that the price of TON may go bearish.
Technical Analysis: Key Support and Resistance Levels
TON’s sudden drop below $7.7 after reaching an all-time high of $8.2 underscores the inherent volatility and uncertainty of the cryptocurrency market. Therefore, if the price of TON continues to decline below the 100-day SMA towards the $6.7 support level and breaks below it, it may further decline to challenge the $6.05 support level.
However, if the price of TON fails to break below the support mark of $6.7, it will start to rise to the resistance level of $7.7 again. TON could rise further to challenge the $8.2 resistance mark and possibly move forward to set new highs if this level is breached.
