Over the course of a week, Toncoin [TON] witnessed a remarkable increase of 32.84%, rising from $4.43 on Friday, September 6th, to $5.885 the following week. Despite this significant surge, the market outlook on the daily timeframe remained bearish.
As we enter the upcoming week of trading, Toncoin stands out as a large-cap asset carrying high bullish expectations after its strong performance in the previous week. The pressing question now is whether the buyers can uphold the momentum?
Upward Momentum, or a Search for Liquidity before Further Decline?
While last week’s gains were substantial, there was no notable surge in trading volume. In contrast, a decrease in value from $6.8 to $5.1 seen on August 24th garnered considerably higher trading volume just two days later.
The recent trading volume levels mirror those from mid-June when TON was valued between $7.1 and $7.6 but lacked a clear trend. Therefore, sustaining an upward trajectory would likely necessitate increased trading volume.
The CMF stood at +0.05, approaching the level indicating significant capital inflows. Additionally, the daily RSI surpassed the neutral 50 mark, indicating a bullish momentum. These factors have instilled optimism among investors, suggesting a potential shift in market structure might be on the horizon.
Could This Rebound Offer an Opportunity for Profit-Taking?
In mid-August, the 30-day MVRV briefly entered the positive territory. It’s worth noting that during this period, TON was experiencing a downtrend. Subsequently, the price started declining on August 24th, pulling the MVRV down with it.
While the recent gains have nudged the MVRV back into positive territory, the downtrend of TON remains unchanged. There’s a possibility that the downtrend may persist similarly to the previous month.
Conversely, there has been a recent uptick in the mean coin age, indicating accumulation and a bullish sentiment. Traders are advised to exercise caution until the $6.1 resistance level is breached.
Disclaimer: The views presented are not intended as financial, investment, trading, or any other form of advice, and solely reflect the opinion of the author.