After testing support levels between $4.6-$4.8, Toncoin [TON] has experienced a notable bullish resurgence. This led to a significant 22% increase in value over the last fortnight, propelling the altcoin above its 20-day EMA of $5.54.
As of the latest update, TON is trading at $5.70 and is currently pushing against a long-standing trendline resistance that has remained intact since July. A successful breakout above this resistance level could pave the way for further upward movement in the days ahead.
Recent Toncoin Recovery and Potential Path Forward for TON
The recent upward movement in TON places it at a critical juncture on the price chart. A breach of the $6 barrier (aligning with the 200-day EMA at $6.03) could spark an extended rally towards $6.78 and potentially $7.00 in the short term.
Exceeding these thresholds would serve as confirmation of a robust bullish recovery, setting the stage for a broader uptrend. Conversely, if TON struggles to overcome the $6 hurdle, a retracement towards the $5.54 support level (proximate to the 20-day EMA) appears probable. A sustained dip below this support might trigger a deeper correction, driving prices back to $5.00 and $4.86.
The Relative Strength Index (RSI) presently sits at 53.50, indicating a neutral momentum stance. With the RSI hovering just above the midpoint, buyers retain influence but must escalate their efforts to cement further upward movement.
Notably, the Awesome Oscillator recently closed above the zero mark, signaling a modest bullish advantage. Continued positioning above this threshold will confirm the prevailing bullish sentiment.
Insights from Derivatives Data
Toncoin’s trading volume surged by +44.39%, soaring to $233.38M, reflecting a renewed interest in the cryptocurrency. Meanwhile, open interest registered a slight uptick of +2.61%, suggesting traders maintained their positions amid recent price fluctuations.
Despite an overall bearish long/short ratio of 0.9666, the long/short ratio on Binance accounts revealed a bullish outlook at 2.4638, indicating a substantial number of traders expect a sustained recovery.
Similarly, the long/short ratio on OKX stood at 1.83, further reinforcing the prevailing bullish sentiment among significant market participants.
Traders are advised to closely monitor the RSI and derivatives data for indications of potential bullish momentum continuation or a reversal in trend. Additionally, buyers should factor in Bitcoin’s performance and general market sentiment before finalizing any trading decisions.