Despite facing challenges historically due to market dynamics, Toncoin [TON] has shown encouraging progress recently, experiencing monthly price gains of 8.35% and weekly increments of 3.62%.
While daily fluctuations have remained consistent, the overall market development of TON positions it for an upward trend.
Anticipated Surge in Liquidity
At the current moment, TON is trading within an ascending triangle pattern, a formation often observed before significant price rallies.
On September 27th, TON briefly exited this pattern but retraced back into its established trading range upon encountering a supply zone.
In recent times, TON has interacted with the support area of the ascending triangle and has initiated an upward movement.
This positive momentum could further amplify once TON manages to close a candle above the upper resistance line of the pattern, set at 5.818, potentially propelling its price to $6.503.
If TON is unable to breach this resistance level, it may continue to trade within the pattern, retracing towards the foundational support level to accumulate adequate liquidity before surpassing the barrier.
Market analysis indicates that a dwindling number of market participants, coupled with an imminent supply constraint, could ignite a potential rally for TON.
Increased Activity in TON Trading Sphere
Recent data from IntoTheBlock has indicated a decline in the number of active addresses, also known as market participants, following a surge in TON’s value.
As of the latest update, there are currently 6.02 million active addresses, signaling subdued trading activity within the TON market, which can reflect either bullish or bearish sentiments.
However, it has been confirmed that the prevailing trend is bullish, supported by the negative exchange flow observed by CryptoCrypto.
The Exchange Netflow, which monitors the quantity of TON available across different cryptocurrency exchanges, has decreased by 1.5 million units.
This reduction indicates a transfer of a substantial amount of TON from exchanges to private wallets for prolonged retention.
Such movements typically trigger a supply squeeze as the limited availability of TON on exchanges could escalate demand for the cryptocurrency, potentially driving up its value.
Awaiting Definitive Confirmation of Bullish Market Outlook for TON
While various market activities and developments hint at a promising future for TON, a conclusive market affirmation is still pending.
Data on Open Interest, which gauges trader engagement in the market, suggests a marginal bearish sentiment among certain participants.
This is notably evidenced by a slight decline of 0.41% in Open Interest, totaling $257.15 million.
A reversal of this metric to positive territory would serve as additional validation that TON is primed for an upward trajectory in the upcoming trading sessions.