TONCoin [TON] has experienced a significant resurgence from its historic support level around $4.6, riding the wave of the broader market rally and renewed interest among altcoin investors.
With a string of positive price movements and a strong breakthrough above crucial resistance levels, TON has caught the eye of traders. Currently, TON is exchanging hands at $6.7, while also challenging its highest point in the last three months.
Is TONCoin set to sustain its upward trend?
The most recent rally in the altcoin market led to a breakout from the downward channel that had constrained TON since September.
The latest phase of the rally showcased a golden cross, where the 20-day EMA crossed over the 200-day EMA – a historical signal of a potential long-term uptrend. Moreover, TON has comfortably positioned itself above the 20, 50, and 200-day EMAs following a wave of bullish market sentiment.
The next key target for bullish traders will be to witness the 50-day EMA surpass the 200-day EMA. A successful crossover could pave the way for a prolonged bullish phase, with initial resistance levels at $6.8 and $7.6.
Nonetheless, in case TON struggles to maintain its current momentum, a short-term correction might lead prices towards the $6.1 support range. This support level coincides with a liquidity zone, offering a solid safety cushion for buyers. A successful bounce from this range could reinvigorate buying pressure.
The Relative Strength Index (RSI) currently sits at close to 69, hinting that TONCoin may be nearing overbought conditions. Traders are advised to closely monitor the RSI—Any drop below the 70 threshold could trigger a consolidation phase or a minor pullback before the next potential upswing.
Detailed Analysis of TONCoin’s Derivatives
Trading volume surged by 69.39% to reach $444.65M, signaling increased trader participation during the recent rally. However, Open Interest witnessed an 8.15% decline, indicating that some traders might be closing their positions to secure profits following recent gains.
The long/short ratio for TON across various exchanges stood at 0.8591, showing a minor inclination towards short positions overall. Nevertheless, the long/short ratio on Binance favored the bulls at 3.8473, signifying optimistic sentiment among traders on that platform.
Moreover, the top trader long/short ratio for TON on Binance was 4.5 for accounts and 2.38 for positions.
It is advisable to keep an eye on Bitcoin’s overall movement, as it could impact TON’s short-term trajectory.