In the past 24 hours, The Open Network (TON) has seen mixed market sentiment as it navigates critical support and resistance zones. Despite some short-term bearish signals, TON remains poised for a potential reversal as buyers emerge at key levels. This analysis will delve into the current price action, focusing on technical indicators that could shape the next 24 hours.

Current Price Movements

TON has dipped to $5.24, following a rejection from the $5.42 resistance level marked by the 200 EMA. The inability to break above this key moving average has triggered selling pressure, leading the price to test lower supports. However, TON has managed to hold above $5.24, indicating that buyers are defending this critical support zone.

The short-term trend shows TON trapped between the 20 EMA at $5.29 and the 200 EMA at $5.42. A break above either of these levels will determine the direction of the next major move. The price needs to close above the 50 EMA at $5.32 to invalidate the current bearish setup and possibly spark a rally toward $5.50.

EMA Trends and Market Sentiment

The EMA sequence on the chart shows a bearish configuration, with the 50 EMA trading below the 100 EMA and the 200 EMA. This alignment suggests that the market remains in a downtrend, at least in the short term. The failure to break above the 200 EMA signals that the bulls are losing momentum.

Read more: Charles Hoskinson Claims Cardano is the Leading Blockchain

However, if TON can maintain support around the $5.24 level, there is potential for a rebound in the coming hours. If bullish momentum picks up, traders should keep an eye on the 50 EMA and 100 EMA as possible reversal points.

RSI and Divergence Considerations

The RSI Divergence indicator currently stands at -6.81, reflecting ongoing bearish pressure. The negative divergence indicates that momentum has yet to fully shift in favour of the bulls, although this could change quickly if buying volume increases. A reversal in the RSI could offer early signals of a potential breakout.

Conclusion 

While TON faces considerable bearish pressure, it is not out of the game just yet. The price action around $5.24 will be pivotal for determining the next move. A break above the 50 EMA could pave the way for a short-term rally toward $5.42 and beyond, while continued weakness could lead to a test of lower support levels.