Toncoin has bounced back to a healthier level of 47, suggesting the possibility of sustained growth. With a current market cap nearing $16 billion, Toncoin is setting its sights on breaking through critical price levels, particularly around the $6.3 mark and beyond.

Toncoin’s RSI Recovery Signals a Potential Uptrend

The most significant signal for Toncoin’s recovery lies in its RSI, a momentum indicator used to measure the speed and magnitude of price movements. On December 9 and 10, the RSI plunged to a deeply oversold level of 18, a condition often followed by a price rebound. Since then, the RSI has surged to 47, moving away from the oversold zone and approaching neutral territory. This indicates that the asset could have further room to grow before hitting overbought conditions.

The RSI is a key indicator for assessing whether a cryptocurrency is undervalued or overbought. A reading below 30 typically indicates that the market is oversold, often paving the way for a reversal. Currently, with the RSI at 47, Toncoin is still far from reaching overbought levels, meaning the rally may have more potential for upward movement if buying interest continues.

Decreased Exchange Supply Signals a Shift in Sentiment

Another promising sign for Toncoin is the recent decrease in its supply on exchanges. On December 3, Toncoin’s supply on exchanges was 1.71 million, but this number has risen to 1.91 million, signaling increased selling pressure. However, in the past 24 hours, the supply on exchanges has decreased from 1.91 million to 1.85 million, suggesting that holders may be more inclined to keep their tokens in private wallets rather than selling them. This shift in behavior could indicate a more positive sentiment surrounding Toncoin, as it reduces the immediate selling pressure on the coin.

A decrease in exchange supply is typically seen as a bullish signal because it suggests that investors are withdrawing their coins from exchanges and are either staking them or holding them long-term. This reduction in available supply can help push the price higher, especially if demand remains strong.

Short-Term EMAs Indicate a Possible Price Reversal

Despite some positive developments, Toncoin’s technical indicators have shown some mixed signals. Recently, the coin’s Exponential Moving Average (EMA) lines formed a “death cross,” with short-term EMAs crossing below long-term EMAs. This is typically seen as a bearish signal. However, Toncoin has recently shown signs of recovery, and its short-term EMA lines are beginning to turn upward again. This shift suggests that while the bearish signal still exists, there is potential for a reversal if the buying momentum continues.

If Toncoin manages to sustain its upward movement, it could push through key resistance levels at $6.3, followed by $6.6 and potentially $6.99. Breaking through these levels would set Toncoin up for more substantial gains, though there may still be some resistance along the way.

Toncoin’s Potential Price Movement

Looking forward, Toncoin has a few key levels to watch. If the current rally continues, the coin could target resistance at $6.3, a significant barrier in its recent price action. After $6.3, the next targets would be $6.6 and $6.99. These levels have acted as resistance in the past, and breaking through them would indicate a strong bullish trend.

However, if the market experiences a setback, Toncoin could test support levels at $5.68 and $5.19. A break below these support levels would indicate further price declines, although the overall sentiment seems to be improving, providing optimism for continued growth.

Conclusion

Toncoin’s recent recovery, fueled by a rebound from oversold conditions, suggests that the coin may continue to see upward momentum. The decrease in supply on exchanges and the improvement in technical indicators indicate that the market sentiment is shifting in favor of Toncoin. With continued buying pressure, Toncoin could test higher resistance levels in the near future, making it a cryptocurrency to watch for potential gains.