After a strong rally, Toncoin (TON) shows signs of weakness, with prices retracing from highs of $5.40 to the current level of $5.2560. The question now is whether this is the start of a larger correction or just a brief pause before another leg up. We’ll explore TON’s potential price action in the short term using key technical indicators like the Exponential Moving Averages (EMA) and the Average Sentiment Oscillator (ASO).
EMAs: Key Levels to Watch
The recent price movement has brought TON back into the support range of its 100-period EMA at $5.0967. This level will determine whether TON continues to rally or faces a deeper correction. A breakdown below this support could signal the start of a bearish phase, with the next major support residing at the 200-period EMA around $5.0551.
Conversely, the shorter-term EMAs (20 and 50) suggest that bullish momentum may be partially recovered. The 20-period EMA is still above the 50-period EMA, which typically indicates the continuation of an uptrend. However, the gap between them is narrowing, indicating that momentum may be slowing down.
ASO Indicator: Bearish Pressure Gaining Strength
The indicator provides further evidence of growing bearish sentiment in the ASO. The red line on the ASO, representing selling strength, remains significantly above the blue line (buying strength). With an ASO reading of 60.4296, the strength of the bearish trend appears substantial, implying that the market could experience further downside if buyers fail to step in.
Conclusion
Toncoin is at a crossroads. While the EMAs suggest the token still has some bullish potential, the ASO is flashing warning signs of increased selling pressure. If TON fails to hold the $5.10 support, a move toward the $5.05 level is likely. Traders should watch for a decisive move above $5.40 to signal the continuation of the uptrend, but for now, caution is warranted as bearish momentum builds.
