Toncoin’s price dropped by about 20% in a short amount of time, dealing a serious blow to the market. Shortly before this dip, millionaire Telegram creator and major Toncoin player Pavel Durov was imprisoned. much while the world of digital assets was taken aback by Durov’s arrest, the cryptocurrency market is now much more preoccupied with TON’s success.
The price of TONNE has dropped from highs of $7.00 earlier this month to about $5.60 as of this writing. The sudden drop in value has been exacerbated by the intense selling pressure that ensued after Durov’s detention was made public.
The cryptocurrency briefly attempted to level out near $600, but further losses followed the break of that support. Technical signs suggest that TONNE is now in a hazardous condition.
Among the key support levels that the cryptocurrency has broken below are the 200-day and 50-day moving averages, which typically act as psychological obstacles for traders. The fact that these levels were broken indicates that TONNE could face more downward pressure before finding any true support.
The significant spike in trading volume that coincided with the sell-off adds to the concerns, indicating that the decrease was mostly caused by strong selling rather than a lack of desire to buy.
This suggests that a large number of investors were eager to sell their shares, most likely out of concern that prices would continue to decline. Though it is impossible to predict TON’s immediate future, positive improvements are necessary for the cryptocurrency to regain investor confidence.
Bitcoin failed to reach $70,000
As Bitcoin has approached the $70,000 barrier, it has encountered significant resistance lately. Due to the prior positive momentum, traders and investors were anticipating a breakthrough; however, Bitcoin has not hit this critical psychological threshold, which has caused a substantial price decrease.
The cryptocurrency’s price movement over the past several days highlights the challenges it confronts. After peaking at $64,600, the price of bitcoin began to decline; it is currently trading at around $63,951. With Bitcoin approaching the $70,000 level, which has both as an objective and a barrier in the last several weeks, this dip underscores traders’ lack of purchasing conviction.
There are several reasons why the price of Bitcoin might not be able to keep rising towards $70,000. It is crucial to understand the psychological importance of this round number above everything else. Traders usually put sell orders at these levels, anticipating a reversal or correction, which adds to the resistance.
Maybe failing to break over this barrier set off a wave of profit-taking that hastened the fall. Technical indications provide more proof that substantial resistance is being encountered by Bitcoin. More resistance is being offered by the 200-day moving average as the price approaches the top border of a well-established channel.
The relative strength index (RSI) suggests that during its recent ascent, bitcoin may have been overbought, which might have led to a natural cooling off when purchasing pressure lessened. Now that Bitcoin is trading slightly below $70,000, the market’s focus will likely shift to seeing whether it can gather momentum and breach this significant barrier once more.
Ethereum in difficult position
At the moment, Ethereum is struggling mightily to overcome a significant resistance level. The digital asset is now struggling at the 26-day exponential moving average, trading at about $2,750. Ethereum’s inability to break over this barrier raises the possibility of more market consolidation or possibly a reversal.
Ethereum has bounced back from its lows, but recent price activity indicates that there may not be enough momentum to push the price beyond $2,750 and closer to $3,000.
One of Ethereum’s main issues is the network’s present condition. Even with the price recovery, the network’s utilisation measurements show that it is far from completely loaded. The lack of purchasing power needed to raise the price might be attributed in part to the underutilisation.
