Investors are eager to support potential growth in the value of Toncoin (TON) as a means to recover recent losses. Toncoin seems to be experiencing a shift towards a bullish trend after a period of declining prices.
One on-chain metric, Mean coin age, reveals the sentiment of long-term investors by calculating the average number of days that circulating coins have remained at their current addresses. An increase in this indicator suggests that investors are choosing to hold onto the asset, indicating a higher level of confidence. Conversely, a decrease in the indicator signifies that investors are moving their assets, reflecting lower confidence. In recent days, the growth of this metric for Toncoin indicates an increased bullish sentiment.
Another indicator, price divergence and daily active addresses (DAA), also supports this scenario. Divergence occurs when the price of a cryptocurrency and its DAA move in opposite directions, indicating a potential disparity between market valuation and network usage. The current DAA divergence for Toncoin is giving a buy signal, signaling an increase in price and an increase in the number of network participants. If investors continue to accumulate TON, Toncoin could experience a rise in the near future.
Considering the changing investor sentiment, it is possible that Toncoin may break out of its descending channel in the coming days. A potential breakout above the upper bound of the channel could lead to a rally of approximately 18%, with a target price of $7.8. However, failure to break the barrier at $5.9 may result in a price decline to the support level of $5.4. Loss of this support level could invalidate the bullish scenario and lead to a further drop to $5.2.
Please note that this article is for informational purposes only and should not be interpreted as financial or investment advice. It is always recommended to independently verify information and consult with a professional before making any financial decisions.