Toncoin Faces Bearish Outlook as Traders Bet Against Recovery

Toncoin (TON) recently saw its price dip below a significant threshold, with traders increasingly betting against a quick recovery. Data from Coinglass reveals that many traders are shorting the token, reflecting a bearish market sentiment. As TON dropped below its 20 and 50 Exponential Moving Averages (EMAs), it signaled a potential slide towards lower levels, hinting that further declines may be on the horizon.

The shift in market sentiment is evident in TON’s Long/Short ratio, which has fallen below 1, meaning that more traders are expecting declines than gains. A ratio below 1 usually points to a bearish outlook, as there are more sellers than buyers. This sentiment aligns with the broader cryptocurrency market, where other coins, including Bitcoin, have also faced downward pressure recently.

Adding to the bearish indicators, on-chain data shows a rise in Toncoin’s Mean Dollar Invested Age (MDIA). This metric measures the average age of tokens based on their purchase price, and a higher MDIA suggests that many tokens remain inactive. Typically, active movement of tokens can indicate interest and potential for a price boost, but with most TON tokens lying dormant, the chances of a swift rebound seem limited.

While there is still some hope if TON retests a key Fibonacci retracement level, the odds appear stacked against a rapid recovery. With TON trading under critical EMAs, the token may continue its descent unless significant buying volume returns. For now, the market sentiment around Toncoin remains cautious, with traders anticipating further price drops.