Toncoin Forecast: After a bullish breakout, TON will launch a rally

The price of Toncoin (TON) may rise in the short term due to changes in investor sentiment

Investors will be looking to support potential growth in the value of Toncoin (TON), which will allow them to win back recent losses.

Toncoin: Things Are Taking a Bullish Turn Again

After several weeks of falling prices, TON holders seem to be preparing for a potential rise, as evidenced by their current behavior patterns.

The on-chain metric Mean coin age determines the level of trading sentiment among long-term investors by calculating the average number of days that circulating coins spent at current addresses. The growth of this indicator suggests that investors prefer to hold the asset.

A decrease in the indicator, on the contrary, means that investors are moving their assets, and this is considered a sign of low confidence, which is what has been happening with the altcoin over the past couple of days. However, the metric is now rising, reflecting increased bullish sentiment.

Read more: What is TON. Review of the project and cryptocurrency Toncoin

Average age of Toncoin. Source: Santiment

The indicator of price divergence and daily active addresses (DAA) also indicates a similar scenario. Divergence occurs when the price of a cryptocurrency and its DAA move in opposite directions, indicating a potential discrepancy between market valuation and network usage.

DAA Divergence and Toncoin Prices. Source: Santiment

At the moment, this metric is giving a buy signal, demonstrating an increase in price and an increase in the number of network participants. If investors start accumulating TON, Toncoin could soon rise.

Read also the instructions: How to buy Toncoin (TON) for rubles: instructions

TON forecast: should we expect a rally?

The price has been moving downward within the descending channel over the past few days. Looking at the changing investor sentiment, it can be assumed that TON may break out of this channel.

A potential breakout of its upper boundary would mean the possibility of a rally of almost 18%. This would mean that a break of the $7.0 resistance line could send the altcoin towards the $7.8 target.

4-hour chart TON/USDT. Source: TradingView

However, if Toncoin fails to take the barrier at $5.9, the price may fall to the support level of $5.4. The loss of this line could negate the bullish scenario and lead to a further fall to $5.2.