The TON price is currently making a higher high and low pattern after observing a substantial fall in its value. The price saw a decline of more than 14% after breaching past its major support levels. It recently made a breakdown through a crucial support near the 200 EMA which was being defended by the buyers for the past 7 months. Seeing the present price action the Investors may prefer to remain cautious regarding the future reversal.
The majority technical indicators are trading in support of the sellers which indicates that the price of TON may continue to move in a downtrend in near future. The 50 EMA is crossing below 100 EMA giving a death cross; which is taking a retest through the 200 EMA though the price will have to cross various major resistance levels before it succeeds in its attempt.
Recent Decrease in Bullish Sentiment of Investors
The sentiment metrics provided by Lunar Crush suggest that there is a significant decline in the positive sentiments of the buyers within the last few weeks. The total bullish sentiment rate is seeing a fall of 46.94% furthermore on the total bearish volume is also increasing steadily which signifies that the investors sentiments are taking a bearish turn regarding the future value of the token.
Previously, it was suggested that, as the TON price may see a further decline if it does not find support. This was proven true when the price declined by 14% within the next week. The analysis was provided on the basis of the breaking of a crucial support level and the market structure.
At present, the price is making another attempt to recover its previous trend. However this price might be a little challenging for it to attain.
Technical Analysis of the Tron Price
The RSI line is currently making a higher high and low pattern after intercepting the 14 SMA. The current value of RSI is 43.80 point’s which is trading below the 14 SMA. The current value of 14 SMA is 39.78 points.
The Stochastic RSI is trading near the oversold levels making the double top pattern. The %K and %D lines are providing a bearish crossover near 70 points. The value of the stochastic RSI at present is 69.95 points.
Conclusion
According to the analysis, the price of TRX is indicating that it may continue the bearish trend. Though the buyers are not ready to lose control of the price just yet.
Technical levels –
Support -$1.800
Resistance – $2.400
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/28/ton-price-analysis-will-ton-price-recover-its-previous-value/