During the last three days, Toncoin [TON] has shown significant upward movement. During this timeframe, the digital currency has surged from a low of $4.7 to a peak of $5.24.
At the moment, Toncoin is being traded at $5.22, representing a 5.26% increase in value over the past day.
Before this recent surge, TON had been on a downward trend, experiencing drops of 2.5% and 3.49% on weekly and monthly charts respectively.
This recent spike in price has instilled optimism in the market, with analysts now anticipating a probable reversal towards the upside. Analyst Dark Fost from Cryptoquant highlighted the resurgence of buying pressure as a crucial factor to monitor.
Toncoin Enters Favorable Buying Territory
As per CryptoQuant’s analysis, the normalized risk level for TON has entered a zone suitable for buyers. This level has fallen below 0.2, indicating the entry into an area with lower risk.
Historically, the normalized risk factor has played a significant role in shaping the price movements of Toncoin. Whenever it reached the low-risk zone, the market tended to reverse its direction in the mid-term.
The normalized risk assessment indicating low risk, coupled with Toncoin’s Open Interest shifting from a negative value of over -100 million to -15 million, suggests that the previous bearish trend is gradually moving towards a neutral stance or even a positive one in the short run.
This transition signals a resurgence of positive momentum in the market.
Is TON Poised for a Prolonged Reversal?
As observed, Toncoin has now positioned itself in a low-risk area, encouraging buyers to re-enter the market. This resurgence in buying interest has facilitated a rise in prices, driven by increased buying activities.
Based on the analysis by CryptoCrypto, TON is currently experiencing robust upward momentum as buying pressure gains strength.
The growing buying pressure is evident with the emergence of a bullish cross-over on Toncoin’s Relative Strength Index (RSI).
A bullish cross-over signifies that buyers are currently surpassing sellers and are asserting dominance over the market.
Furthermore, the altcoin’s Moving Average Convergence Divergence (MACD) is on the verge of indicating a bullish cross-over. If confirmed, this cross-over will affirm a continuation of the upward trend.
Looking ahead, Toncoin’s Spot netflow has stayed negative throughout the past week, suggesting more outflow from exchanges than inflow.
The bullish sentiment is notably strong among large holders, as reflected in the substantial shift in netflow from -12.67 million to 15.15 million. This change indicates a heightened flow of capital from whales as they amass more of the altcoin.
Toncoin is currently displaying vigorous upward momentum as market participants rejoin the trading arena. With the altcoin situated in a low-risk zone, investor sentiment is turning optimistic, with expectations of further price hikes.
If the current market conditions persist, TON could potentially reapproach $5.83, strengthening its position to challenge the $6 resistance level. Conversely, in case buyers are unable to sustain the momentum, the digital asset might retreat to $5.03.