Toncoin price hovers near $5.96 after resistance test

Toncoin (CRYPTO:TON) recently attempted to break through the $6.00 resistance level but fell short, reaching $5.96 before losing momentum.

The altcoin now faces a critical point as it seeks to convert this resistance into support, a move that could trigger further gains.

Despite the temporary setback, Toncoin still holds potential for recovery in the near term.

According to technical indicators, including the Moving Average Convergence Divergence (MACD), bullish momentum appears to be weakening.

The MACD shows receding green bars, signaling a possible loss of strength in the uptrend.

However, as long as the MACD remains above the neutral line, there is no definitive indication of a bearish reversal.

A drop below this line would confirm a more negative outlook, but for now, Toncoin’s future remains uncertain.

Market sentiment around Toncoin has improved with the reduction of short-term holders.

According to data from IntoTheBlock, the share of investors holding Toncoin for less than a month has declined from 26% to 15% over the past ten days.

This reduction in short-term holders decreases the risk of a sudden sell-off, which may help stabilise the price.

At the time of writing, Toncoin is trading at $5.83, just below the key $5.96 resistance.

If Toncoin can flip this level into support, it could pave the way for a rally, with the next target at $6.36.

However, failure to breach this level again could result in a consolidation phase, where Toncoin may trade between $5.37 and $5.96, potentially invalidating the current bullish outlook.