Toncoin Sentiment Shifts Bullish: Is TON's Rebound Ahead?

• TON has decreased by 14.64% in the last month.
• Market fundamentals indicate a shift in market sentiment from bearish to bullish.

Over the past month, the crypto market has experienced a strong surge with Bitcoin [BTC] Local high of $69k

However, in the past week, the market has cooled down, with most cryptocurrencies going negative. Thus, the recent losses have started to outweigh the monthly gains.

One of the most hit altcoins was Toncoin [TON]. Since hitting the monthly high of $5.8, TON has experienced a significant decline.

In fact, as of this writing, Toncoin was trading at $4.95. It has decreased by 2.42% compared to the previous day.

Equally, the altcoin has declined 14.64% on a monthly basis, with this bearish trend increasing by 6.06% on the weekly chart.

Notably, the prevailing market conditions have left the crypto community pondering the trajectory of altcoins.

One of them is popular crypto analyst Ali Martinez, who suggested that TON's current situation indicates a buying opportunity.

TON shows a buy signal

In his analysis, Martinez posits that TD Series has shown a buy signal on Toncoin's 12-hour chart. This suggested a possible price rebound in the near future.

Source: X

This means selling pressure is a warning, and the bears are losing momentum. When sellers lose momentum, buyers may enter the market at lower prices, thus creating buying pressure.

The presence of a buy signal has led to increased trading activity in the past day. Thus, TON's trading volume increased by 126% to $313.1 million. So most traders were entering the market at low prices.

If the market follows, prices will rebound and see more gains on the price chart.

Gain ahead?

Although TON has experienced a sustained decline, current conditions suggest that the bear has been, and the altcoin may see some gains ahead.

Source: IntoTheBlock

For example, the netflow ratio of the largest holder of Toncoin fell to 70% from a monthly high of 289%. This shows a change in sentiment, with large holders hoarding their assets as they expect more gains.

Such a decline suggested market confidence.

Source: IntoTheBlock

In addition, the total outflow of Toncoins on the collective exchange increased from a low of 1.86 million tokens to 7 million.

This shows that most investors withdraw their tons from exchanges and store them in cold wallets. Thus, investors seem confident in the future prospects of the altcoin.

Read Toncoin [TON] Price Forecast 2024-2025

Simply put, TON experienced a shift in market sentiment from bearish to bullish at press time. If this sentiment holds, Ton will recover a higher level.

Thus, the altcoin may try the $5.4 resistance level in the near term. A breakout from this level would see a ton reach $5.8. However, if the bulls fail to capture the market, further declines will bring TON down to $4.02.