Toncoin’s Roadblock
Toncoin (TON) has been facing challenges in its attempt to reach the $7 price level. A significant sell wall at $5.23 and rising dormancy are hindering its progress.
The $5.23 Barrier
A large number of addresses hold TON tokens at an average price of $5.23, creating a strong resistance level. Overcoming this barrier is crucial for Toncoin to continue its upward trajectory.
Dormancy Concerns
The Mean Dollar Invested Age (MDIA) for TON has been rising, indicating that tokens are becoming more dormant. This suggests that investors may be holding onto their TON tokens rather than selling, which could limit upward price movement.
Technical Analysis
From a technical analysis perspective, Toncoin’s price is currently below key moving averages, indicating bearish sentiment. A breakdown below the $5.12 support level could lead to a further decline.
Potential Outcomes
- Breakthrough: If Toncoin can overcome the $5.23 resistance and break above the moving averages, it could initiate a rally towards $6.18.
- Setback: Failure to break through the $5.23 resistance could lead to a decline towards $4.89.
Conclusion
Toncoin’s price is currently facing headwinds due to a supply wall and rising dormancy. Overcoming these challenges will be crucial for the token to achieve its full potential. Investors should closely monitor on-chain metrics and technical indicators to make informed decisions.
