Toncoin (TON) continues to struggle in a bearish market environment. Over the past 24 hours, TON attempted a recovery but faced strong resistance, highlighting the cryptocurrency’s ongoing challenges. Despite a minor price bounce, technical indicators suggest that the downward trend remains intact.

Price Action Signals Weakness

TON’s price action over the last day has been underwhelming, with the token remaining below crucial exponential moving averages (EMAs). The 20 EMA stands at $4.7696, and the 200 EMA at $5.3177, indicating that TON is still in a bearish phase. The gap between the price and the 200 EMA highlights the downward momentum, and without a decisive break above the nearer 20 EMA, any bullish attempts will likely remain short-lived.

Average Sentiment Oscillator (ASO) Confirms Downward Movement

The Average Sentiment Oscillator (ASO) further supports the bearish outlook. The negative sentiment reading of 67.5475 contrasts sharply with the more subdued positive sentiment at 32.4525, suggesting that market participants are still predominantly pessimistic. This imbalance indicates that buying interest is weak, and sellers continue to dominate price action.

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Recovery Attempts Stalled by Resistance

Toncoin’s brief recovery attempt saw it rise to $4.6660, but this move was quickly capped, and the token remains below key resistance levels. The 20 EMA at $4.77 acts as immediate resistance, and unless TON can close above this level, the bears will likely retain control. Traders should be cautious, as the downtrend shows no signs of reversing yet.

Conclusion: Further Downside Likely

The technical analysis points to continued bearish pressure on Toncoin. The price remains below critical EMAs, and the Average Sentiment Oscillator confirms that market sentiment is still largely negative. A break above the 20 EMA could signal a potential shift, but until then, the outlook remains bearish. Investors should watch key levels closely to gauge whether TON can break out of its current downtrend or if further declines are on the horizon.