On January 29th, Wednesday, the crypto market showcased a slight uptick ahead of the Federal Open Market Committee (FOMC) meeting and a speech from Federal Reverse Chair Jerome Powell. With the Bitcoin price stable above the $100k level, most major altcoins, including TON, seek support at key support. However, the Toncoin price faces a risk of this support breakdown as the exchange inflow rises.
Key Highlights:
- The formation of a descending triangle pattern and increasing exchange inflow signals further correction for the Toncoin price.
- The Toncoin correction price is 5% away from challenging the multi-month support of $4.6.
- A bearish crossover below the 100-and-200-day exponential moving average should accelerate the market selling pressure.
Toncoin Price Faces Selling Pressure as Exchange Inflows Surge
In a recent tweet, renowned trader Ali Martinez highlighted significant onchain activity on the TON network, signaling risk for potential downfall. Data sourced from Santiment shows over 240,000 Toncoin have been transferred to exchanges, potentially increasing the selling pressure in the market.
Historically, a large inflow to exchanges suggests investors could be prepared to liquidate their holdings as they have often coincided with market tops and price corrections.
Triangle Pattern Points For Major Breakdown Ahead
Over the past two months, the Toncoin price has underperformed to broader market movement as its correction recorded a sharp drop from $7.19 to $4.8— a 33.5% fall. The falling pressure dived below the key daily EMAs (20, 50, 100, and 200), projecting a bearish turn in market sentiment.
Furthermore, the daily analysis reveals the formation of a descending triangle pattern characterized by a downsloping trendline and bottom neckline support at $4.6. The lower top formations within this pattern hint at increasing sellers’ influence on price movement, potentially leading to neckline breakdown.
If a daily candle closes below the $4.6 floor, the post-breakdown fall could seek support at $3.3, followed by $2.78.
Conversely, if the broader market stands bullish, the TON buyers may defend neckline support and breach the overhead resistance to invalidate the bearish thesis.
Also Read: Coinbase Strengthens Advisory Board with Political and Financial Experts
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