TON, the native cryptocurrency of The Open Network (TON), has been under significant pressure recently, as bearish sentiment continues to build. The digital asset has struggled to maintain upward momentum, with its price hovering near a critical resistance level that could spell further trouble. However, there’s a key factor that might help TON avoid further losses and even pave the way for a potential rebound. Let’s take a deeper look at what’s happening with TON’s price and what investors should be aware of.

At press time, TON is trading close to $5.009, a level that has proven difficult to break in the past. This price point has attracted substantial selling activity, and many market analysts believe this resistance could push the token lower. Despite these challenges, the cryptocurrency is seeing large outflows from exchanges, a sign that long-term holders are growing more confident in TON’s future. Will this be enough to turn the tide, or is further decline inevitable?

The Price Struggle: TON Hits Critical Resistance Level

The price of TON has faced a rollercoaster of movements over the last few weeks. At the time of writing, TON is down by about 5% over the past month, indicating that it has been struggling with consistent growth. However, the asset has made a slight rebound recently, gaining just over 1% on the weekly timeframe.

Despite this small recovery, TON is currently facing a major hurdle. The token has hit a resistance level of $5.009, a price point that has seen a lot of selling activity. This resistance is significant because it aligns with a high concentration of sell orders, as shown by the In/Out of the Money Around Price (IOMAP) indicator. According to data from Into The Block, approximately $80.9 million in TON sell orders are clustered around the $4.93 to $5.03 range. This makes it harder for the price to break above this level, and unless there’s a significant change in market conditions, TON could face a downturn.

For TON to regain upward momentum, it must break this resistance and maintain support above the $5 mark. However, with growing selling pressure, it seems more likely that the token may struggle to push past this key level.

Selling Pressure and Bearish Sentiment Drive TON Lower

Market sentiment surrounding TON has been predominantly bearish, especially with the growing selling pressure. Data from Coinglass shows that the Open Interest for TON futures contracts has been declining since late August. Open Interest represents the number of outstanding contracts and is often used to gauge market participation. A drop in Open Interest suggests that fewer traders are actively engaging with the asset, leading to a reduced liquidity environment that can exacerbate price declines.

Moreover, liquidation data shows that long traders—those betting on the price of TON to rise—have been experiencing increasing losses. Over the past 24 hours, approximately $151,620 worth of long positions were liquidated, as TON’s price moved against these traders’ expectations. This is a worrying trend because continued liquidations could deepen the downward pressure on TON’s price, making it even harder for the token to reverse its current trajectory.

The ongoing decrease in Open Interest and the rising number of liquidations indicate that TON may face a continued downtrend in the short term. If these bearish conditions persist, the cryptocurrency could see further declines, potentially reaching its next support level at $4.035, a price not seen since March 2024. A drop to this level would represent a decline of more than 10% from its current price.

A Glimmer of Hope: Large Outflows from Exchanges

Despite the bearish outlook, there is some hope for TON’s recovery. Recent data from Coinglass reveals that TON has been experiencing significant outflows from exchanges. Over the last 24 hours, $3.35 million worth of TON was withdrawn from exchanges, and in the past seven days, a total of $17.38 million has left the platforms. When assets are moved off exchanges, it often signals that investors are shifting toward long-term holding, indicating confidence in the token’s future value.

This shift could be crucial for TON’s ability to stabilize. Large outflows from exchanges typically reduce the available supply of the cryptocurrency in the market, which can help support its price. Investors who move their assets off exchanges often intend to hold for a longer period, believing in the long-term prospects of the asset. This behavior suggests that some holders may be betting on a future price increase for TON, despite the short-term challenges.

If this trend continues, it could help mitigate the selling pressure that TON is facing and provide some support for the price. However, if outflows slow or reverse, TON could struggle to hold its ground, as the increased supply on exchanges could put downward pressure on the price.

Can TON Reverse the Trend?

While TON’s price has been under pressure, there is still a chance for the cryptocurrency to recover, depending on a few key factors. The primary factor to watch is the continuation of large outflows from exchanges. If this trend holds up, it could provide enough support to counterbalance the selling pressure and allow TON to push higher.

However, if the selling pressure intensifies, and outflows slow down, TON may find it difficult to recover and could face further losses. The cryptocurrency market is notoriously volatile, and short-term price movements can be influenced by a variety of factors, including broader market trends and investor sentiment.

Investors should also keep an eye on TON’s performance relative to key support and resistance levels. If the token can break above $5.009 and hold that level, it may signal a reversal of the current downtrend. On the other hand, if the price falls below $4.035, it could signal further declines in the near future.

Conclusion: TON’s Outlook Depends on Key Market Trends

At this point, TON’s price remains at a crossroads. The cryptocurrency is under pressure from strong selling activity and bearish sentiment, but large outflows from exchanges offer a glimmer of hope. If this trend of outflows continues, it could provide the support needed to prevent further declines and help TON stabilize at its current levels. However, if the outflows slow down or if selling pressure intensifies, TON may struggle to maintain its position and could face additional losses.

Investors and traders should continue to monitor TON’s price action closely, particularly around the $5 resistance level and the $4.035 support level. The next few days could be crucial in determining whether TON can break free from its current downtrend or if it will continue its struggle in the face of mounting bearish pressure.