Toncoin Price In Trouble As Bears Claim Domination Near $5 Level?

Toncoin price has slipped below the psychological $5 level amid the increasing selling pressure. The price has been hovering constantly near that level for the last two sessions. That signifies the bears’ control at the psychological $5 level.

When writing, Toncoin was exchanging hands close to $4.74, recording an intraday loss of 1.25%. The TON price has been under strong selling pressure since the arrest of Telegram’s CEO, Pavel Durov, in France.

Moreover, the Open Interest data, as well as price DAA divergence, suggest that the selling pressure might continue to dominate in the short term. Let’s analyze whether bulls will reclaim the $5 level or the coin will suffer more.

Toncoin Price DAA Divergence Indicates Worse Scenario in the Loop

Toncoin price dropped nearly 11% in a week, making a strong psychological support of the $5 level. Moreover, there has been a significant development in Open Interest contracts and Price DAA divergence metrics.

The Open Interest contracts were nearly $290 Million a week ago. They dropped to $253 Million at press time. The drop in the number of OI contracts was parallel to the price drop, which highlighted the liquidation of positions on the long side.

Moreover, As per Santiment data, Toncoin’s 24-hour active addresses have dropped significantly. As a result, the price DAA (Daily active address) curve headed towards the zero line, indicating fading buyer interest.

The daily active addresses reflect the total number of unique users who have participated in any transaction. A decrease in DAA indicates the fading interest of the users. Toncoin’s market capitalization at the time of writing was $11.95, and thus, it ranked 10th by market cap.

The volume to market cap ratio at 3.3% suggested low volatility in the crypto. Its circulating supply was 2.53 Billion TON tokens.

Will Toncoin Reclaim $5 Level or Suffer More?

From a technical point of view, the Toncoin price has withdrawn below 20-day, 50-day and 200-day EMAS. That suggested a bearish dominance over the trend.

Talking more precisely, the TON price has slumped below the psychological $5 level. It could not recover in the last couple of sessions, which signified sellers’ dominance. On the lower side, the price may find support near the $4.5 and $4 levels.

The daily chart shows that the sellers’ influence may continue to drag the Toncoin price below the three-month low. The broader market’s weakness could also further widen the losses. This crypto’s OI data and price DAA divergence indicator suggested buyers’ failure to defend the lower levels.

When writing, the Relative strength index RSI line was close to 32 points. The 14 day Simple Moving Average (SMA) line was placed at 35.98 points. Both the lines headed towards the south, indicating a bearish trend prevailing in the short term.