Toncoin [TON] Retraces After YTD Rally, Key Demand Levels To Watch Below $7

Toncoin [TON] is perhaps one of the best-performing cryptocurrencies of 2024. On a YTD (year-to-date) basis, TON, at press time, was up 186%

Toncoin (TON) has recorded one of the best performances among cryptocurrencies in 2024. Year-to-date (YTD), TON was up by 186% at press time, surging from trading at $2 to over $8, outperforming even Bitcoin’s (BTC) 61%.

However, after retesting above $8 in early July, Toncoin has shed some of its gains, slipping below the $7 mark on the price charts.

Its feeble attempt to reclaim the $7 level at press time meant that its +15% losses could amplify further, opening up more discounted buying opportunities for traders looking to re-enter the market.

Is there more TON bargain to be had below $7? Chart: TradingView

Collectively, the market witnessed a mid-week relief rally as Bitcoin attempted to retest the $68k level hours before Trump’s speech at the Bitcoin 2024 conference. This effort was coupled with high bullish expectations from the Fed rate decision on 31 July.

Despite the potential bullish momentum on the macro front, TON appeared weak on the price chart. The retracement slid below the 23.6% Fib retracement level and the 20-day Simple Moving Average (SMA).

As a result, TON lost two crucial short-term support levels. This meant that short sellers could drag TON towards the two marked daily bullish order blocks (white and cyan), which coincided with the $5 and $6 levels.

Hence, if TON fails to climb past $7, these two levels could serve as key demand zones to watch out for.

Furthermore, bearish sentiments for TON in the spot market were also highlighted by the below-average readings on the OBV and RSI.

Toncoin – Undervalued? Chart: Santiment

According to Santiment’s Market Value Realized Value, the negative reading (-7%) at press time indicated that Toncoin was valued at less than its average price. This metric tracks the average cost of the token, with the press time reading suggesting that TON could be up for grabs at a good price.

Read Toncoin [TON] Price Prediction for 2024-2025

However, there didn’t seem to be a strong uptick in network activity, as evidenced by a slight increase in daily active addresses. Finally, at press time, overall market sentiment had not strengthened to denote a bullish reversal, as the Weighted Sentiment’s reading remained neutral.

Collectively, the above readings suggested that TON’s press time position was attractive for speculative bulls, especially if it dropped to $6 or $5.

However, a sharp retracement by BTC following Trump’s speech or the Fed rate decision could delay TON’s early August recovery.

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