Toncoin (TON) Faces Selling Pressure as RSI Approaches Oversold Levels

Toncoin (TON) has recently come under pressure, with its price showing signs of increased selling momentum. Technical indicators, including the Relative Strength Index (RSI), suggest that the coin is approaching oversold territory. However, this may also set the stage for a potential price rebound, depending on market conditions and buying interest.

TON RSI Signals Oversold Conditions

As of the latest price action, Toncoin’s RSI stands at 29.69, which is slightly up from a recent low of 26. This suggests that the coin is nearing oversold conditions, where selling has been the dominant force in the market. An RSI below 30 is generally considered a signal that an asset is oversold and may be undervalued, potentially indicating that a price recovery could be on the horizon.

While the current RSI level hints at an oversold condition, it's important to note that historical patterns for TON show that the coin’s RSI has previously dropped even further — at times falling below 15 — before a meaningful reversal occurred. This suggests that while the market may be close to bottoming out, further downward pressure is still possible before a significant recovery takes place.

Increased TON Supply on Exchanges Raises Concerns

In addition to the RSI data, recent market activity indicates that some holders may be preparing to sell. Over the past few days, approximately 30,000 TON were transferred to exchanges, which could be a sign of potential selling pressure. When coins are moved to exchanges, it often suggests that holders are preparing to liquidate their positions.

In contrast, when coins are withdrawn from exchanges, it typically signals a bullish sentiment, as investors prefer to hold their assets off-exchange in anticipation of price appreciation. Although the transfer of 30,000 TON is not a massive volume, it could create short-term selling pressure that may add to the downward momentum in the market.

Price Outlook for TON: Is a Rebound Possible?

Looking at Toncoin’s price chart, the Exponential Moving Averages (EMA) are showing a bearish setup, with the price trading below all EMA lines. Additionally, short-term EMAs are positioned below the long-term ones, reinforcing the downtrend and suggesting that sellers are currently in control.

If this trend continues, Toncoin could test support at around the $4.45 level, which could act as a key area of stabilization. However, with the RSI indicating that the asset is approaching oversold conditions, a rebound is a distinct possibility.

If buying interest begins to pick up and a reversal occurs, Toncoin could target resistance at around $4.91. This would depend on a shift in market sentiment, as well as a potential change in momentum from sellers to buyers.

Key Levels to Watch

Support Level: $4.45

Resistance Level: $4.91

Overall, Toncoin’s price action will likely remain volatile in the short term, with key levels around $4.45 and $4.91 being critical for determining the next move. While a rebound is possible, it may take some time for the coin to stabilize and reverse its current downtrend. Traders should monitor both the RSI and market activity for signs of a shift in momentum.