Toncoin (TON) Price Approaching Key Support, Analysts Predict Bullish Reversal

Toncoin (TON) price is approaching a critical support level of $3.250, which is triggering short-term buying signals that could lead to a bullish trend.

According to market analysts,  if the buying pressure continues, TON may be able to bounce back to the key resistance level of $ 5.262, $6.175, and $7.105 in the forthcoming weeks.

Toncoin (TON) Price Performance And Key Support Zone at $3.250

Toncoin is currently trading at $3.779, a 7.26% drop in the past 24 hours.The $3.250 level is considered a crucial support zone, as it has previously acted as a demand area.

If the price holds at this level, traders may look for entry points to take advantage of a potential rebound. However, if Toncoin price fails to sustain support at $3.250, further declines toward $3.00 or lower could follow before any recovery begins.

The Relative Strength Index (RSI) is at 21.17, which is an oversold level, which means that TON could bounce back in the short-term if buyers come back to the market. Meanwhile, the MACD is as bearish as it has the MACD line below the signal line and the associated histogram being negative.

Market analyst best_analysts believe that a breakout from the falling wedge pattern could drive TON toward resistance levels at $5.262, $6.175, and $7.105. These targets align with past resistance zones and Fibonacci retracement levels, making them key points where profit-taking may occur.

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Funding Rate and Market Sentiment

In the last couple of weeks, the OI-weighted funding rate for TON has been almost flat suggesting that there is no major sentiment in favor of either bulls or bears. A high funding rate implies that there is demand to be long and a low funding rate is an indication of demand to be short.

Toncoin price decreased from $7.89 that it attained in early December and the funding rate reduced considerably, which pointed to ‘liquidations’ and ‘bearish’ market forces.

At present, the funding rate is close to a neutral position and this is the reason why traders are still awaiting the direction of the market to take positions.

Toncoin (TON) On-Chain Data Suggests Majority of Holders Are at a Loss

TON holders are currently in the red, as the price predates their average cost basis. Information on the chart shows that the majority of the wallet bought more TON at the prices above $3.80 and they are now in a loss zone.

Only a small number of holders are currently in profit, meaning they purchased TON at a lower price than the current market value. Meanwhile, the gray bubble represents traders who are at break-even, indicating that their average buy price is close to $3.80.

For a bullish turnaround, Toncoin price needs to break above major resistance levels to push more addresses into profit. If buying volume increases and market sentiment shifts, it could reduce selling pressure and support a sustained recovery.