Toncoin (TON) Stuck in a Rut, Despite Recent Gains - What's Next?

Over the past weeks, Toncoin [TON] has been stuck between the $5.1 and $5.5 range. While most altcoins have made recent highs as they continue

Over the past few weeks, Toncoin (CRYPTO: TON) has traded within a tight range, with its price remaining largely flat despite a recent uptick in momentum for altcoins.

At the time of writing, TON was trading at $5.55, up by 1.83% over the past 24 hours. This recent price increase also saw the altcoin record gains on the weekly and monthly charts. Over the past week, TON gained by 4.91%, while over the past month, it gained by 6.85%.

Despite these gains, TON remained down by approximately 32.84% from its ATH of $8.24. This recent price action also occurred amid bearish market sentiment, with most altcoins recording losses.

According to AMBCrypto’s analysis, Toncoin was experiencing strong selling pressure amidst bearish sentiment in a bull market. This selling pressure was highlighted by the rising inflow into exchanges.

IntoTheBlock data showed that the inflow into exchanges surged by 37.54% over the past 24 hours. This increased from a low of $34.05 million to $48.69 million over this period.

When inflow into exchanges surges, it reflects investors’ lack of confidence, thus they transfer their assets to sell to maximize profits or reduce losses.

Toncoin’s Stoch RSI also made a bearish crossover days ago, further indicating that sellers are踽 dominating the market. This dropped from a high of 85 to 39 during this period.

Looking further, Toncoin’s Stock-to-Flow (SFR) ratio declined from 44.28 to 0 over the past week. Such a sharp decline in SFR suggests that the altcoin is experiencing oversupply.

An increase in supply without demand often precedes price drops. As such, if the flow rises while the stock remains constant or decreases, this oversupply results in a collapse in scarcity, which results in Toncoin’s perceived value dropping significantly.

According to IntoTheBlock, an SFR of 0 indicates that there is no stock left in circulation, which could lead to a massive increase in demand. However, this is not the case for Toncoin.

Instead, this oversupply is highlighted by the rising Percentage Price Bands (PPBs) at lower price points, indicating strong support at these levels.

On the other hand, there is a lack of PPBs at higher price points, indicating a lack of buying pressure at these levels.

If this selling pressure persists, Toncoin could drop to $5.2, where there is strong support. However, if buyers’ recent attempts pay off, the altcoin will break out of the consolidation range and reach $6.6, where there is significant resistance.