Toncoin price failed to break the $7 resistance level, which resulted in a drop below $6.5.
The MCA shows that TON holders lack confidence in continuing to transfer supply.
Network growth also hit a two-and-a-half-month low, suggesting that TON is losing traction.
Despite attempting to break above the critical resistance level of $7.0, the Toncoin (TON) price has failed to create a new all-time high.
The possible reason behind this is the decline in optimism among investors, which is evident in their behavior.
Toncoin holders retreat
The price of Toncoin is experiencing the effects of declining bullish sentiment among investors. The reason behind this is the lack of conviction among TON holders, which is visible in the decline in the average coin age.
Average coin age is a blockchain metric that calculates the age of all coins by taking into account how long each coin has stayed in its current address. It helps measure the behavior of long-term holders and overall network stability.
A rise in the metric suggests that investors are holding their assets, while a fall suggests that supply is moving around addresses. TON has been seeing declines since February, but broader market cues continue to push Toncoin’s price higher.
Toncoin average coin age. Source: Santiment
However, as clues dissipate, the lack of conviction could show its influence on price action.
But it’s not just existing investors who are pessimistic; potential TON holders are also less bullish. This is evident in the network growth falling to a two-and-a-half-month low.
Network growth is measured by the rate at which new addresses are formed on the network, which are determined by their participation. It assesses whether an asset is gaining or losing traction in the market.
Toncoin network growth. Source: Santiment
Since the indicator has dropped 70% in a week, there is not much motivation for potential investors at the moment. This may be reflected in the future price action of Toncoin.
TON Price Prediction: Key Support Levels to Watch
The price of Toncoin attempted to break above the $7.0 resistance level but failed to pull back over the past ten days. As a result, TON fell below the key psychological support level of $6.5. The recent broader market rally pushed the altcoin above this support level but could not sustain it, falling to $6.2.
Unless the behavior of investors changes, this bearish sentiment will hang over the price of Toncoin. Therefore, the cryptocurrency may fall to test the $6.0 support level. Losing this support could result in a drop to $5.4.
Toncoin price analysis. Source: TradingView
However, if the price of Tocnoin does not break below the $6.0 support, it could bounce back to $6.5. Flipping it to the support would enable a recovery that could push TON to $7, invalidating the bearish thesis.
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