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

Toncoin price slipped below the psychological $5 level amid increasing selling pressure, with price hovering near that level for the last two sessions, indicating bears’ control at the psychological $5 level.

At the time of writing, Toncoin was trading at $4.74, down 1.25% intraday. TON price faced selling pressure after the arrest of Telegram’s CEO, Pavel Durov, in France.

Open Interest data and price DAA divergence indicate that selling pressure may 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暗示循环中更糟的情况

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

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, indicating the liquidation of positions on the long side.

Moreover, Toncoin's 24-hour active addresses dropped significantly, leading the price DAA (Daily active address) curve to head towards the zero line, indicating fading buyer interest.

Daily active addresses reflect the total number of unique users who 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, ranking it 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.

Toncoin to Reclaim $5 Level or Suffer More?

From a technical point of view, Toncoin price slipped below 20-day, 50-day and 200-day EMAS, indicating bearish dominance over the trend.

Precisely, TON price slipped below the psychological $5 level and failed to recover in the last couple of sessions, indicating 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. Weakness in the broader market could also lead to further losses. This crypto’s OI data and price DAA divergence indicator suggested buyers’ failure to defend the lower levels.

At the time of writing, the Relative strength index RSI line was close to 32 points, while 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.

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