The next breakout? Toncoin (TON) faces biggest resistance since August, Ethereum (ETH) in bad shape

Grayscale recently announced new trusts for SUI and XRP⁠⁠⁠⁠⁠⁠⁠, which pushed up the price of XRP. As investors reacted positively to the development, the news served as a major catalyst that pushed up the value of the asset.

However, in response to this bullish momentum, bears quickly increased their selling pressure, resulting in a sharp decline that threatened to derail the rally. XRP is still in a relatively favorable position despite the prompt seller response. The asset appears to have strong upside potential and the price is still rising, retaining some of the gains from the Grayscale announcement.

XRP's current price levels suggest that there may still be room for a rally, even if selling pressure has dampened the initial bullish sentiment. The recent price action can be understood as part of a larger volatility pattern when considering the overall context of the market. The launch of the Grayscale trust has given XRP the momentum it needs for a potential uptrend, leaving investors eagerly awaiting any breakout.

But the bears’ quick retreat highlights how fragile the market is and how important it is to break resistance levels to see a long-term price increase. To see further upside, XRP must overcome the current selling pressure and break through significant resistance levels. The asset's value may increase if the bulls can regain control, especially if the overall market sentiment remains positive.

Toncoin has high goals

The 200 EMA represents a significant technical barrier for Toncoin right now. To figure out the asset's short-term trajectory, this level is crucial. A possible indication of the start of a recovery similar to the one seen when Toncoin broke the 100 EMA in August would be a successful breakout above the 200 EMA.

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Although the 200 EMA currently acts as a strong barrier for TON, a breakout could lead to further price increases. Confirmation of bullish momentum will be closely watched by traders and investors alike through sustained price action above this level. A significant move above this barrier could force TONNE upwards again towards higher price ranges, possibly a renewed test of the highs from the beginning of the year.

However, the consistency of inflows is crucial to sustain a potential breakout. Continuous inflows and buying pressure are required for TON to continue its uptrend. In case the stable capital support is not enough, the breakout may prove to be a false signal. This would likely lead to further consolidation or even a return to the support levels.

Ethereum is in trouble

As the market shows a clear lack of dynamism, ether is going through a difficult time right now. The second-largest cryptocurrency by market capitalization is struggling to gain a foothold despite a significant online presence and the efforts of its co-founder Vitalik Buterin.

The main cause of this decline is seen in a more serious problem with the Ethereum network itself. Recent statistics show that Ethereum's network activity has never been this low since the platform's launch. There is a significant decline in user participation and transaction volumes, indicating a larger ecosystem crisis.

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This is especially worrying at a time when many other well-known cryptocurrencies are either recovering or at least showing stable performance. On the other hand, there are signs of expansion and increased use of alternative networks such as Solana and Telegram Open Network (TON). These newer networks are an attractive replacement for decentralized applications (dApps) and other blockchain-based solutions as they offer lower costs and faster transaction speeds.

ether risks losing ground to these more powerful rivals if it does not improve its poor performance and high gas prices. Given Ethereum's current circumstances, it could see a significant loss of market share while the larger cryptocurrency market tries to recover.