Toncoin (TON) has faced significant downward pressure, influenced by the broader market's bearish trend. Recently, TON has declined sharply and is nearing a Death Cross, a bearish signal that suggests a prolonged downtrend.

Death Cross Formation

The Death Cross occurs when the 50-day EMA crosses below the 200-day EMA, signaling potential further declines. With this pattern forming, Toncoin's recent price momentum indicates growing downside pressure.

NVT Ratio Signals Overvaluation

Toncoin's Network Value to Transactions (NVT) Ratio has reached a seven-month high, indicating that the network value is inflated compared to its transaction activity. A high NVT Ratio typically signals that a cryptocurrency is overvalued and may be due for a correction.

Price Prediction

Toncoin has already dropped 13% after failing to break the $5.96 resistance level. If the bearish trend continues, TON could fall below the $4.86 support level and reach a low of $4.61. However, if the broader market turns bullish, TON might recover, flipping the $5.37 resistance into support.