After experiencing a general decline across the market that led to a 8.0% drop in Toncoin’s [TON] price over the past week to $5.135, the digital currency is now displaying signs of a potential recovery. Over the last 24 hours, it has increased by 2.41%, bolstered by strong backing levels, with the price trajectory showing an upward trend.
While aiming for a short-term target of $6.1, TON faces certain risks that could trigger further decreases. CryptoCrypto has conducted a thorough analysis of the possibilities for a price rally in TON.
Changing Market Dynamics for TON
Priorly, TON’s downturn was mainly attributed to a retreat from a resistance line and breaking through an uptrend line. Nevertheless, the situation has altered, and it is now trading within a larger symmetrical triangle.
This symmetrical triangle, characteristically a bullish sign, is the current trading position of Toncoin. The recent rise in its market value is associated with rebounds from the support side of this pattern, leading to two consecutive days of bullish price movements.
Despite the surge in this rally, there are looming threats of a decline. TON is nearing a supply range between $5.510 and $5.657, which could bring its price down further if the support does not uphold the buying pressure.
Conversely, surpassing this level could drive TON towards the target mark of $6.1.
CryptoCrypto has evaluated the sustainability of this rally and the feasibility of achieving the $6.1 short-term goal.
Consistent Upward Momentum in TON Trade
Recent patterns suggest a growing momentum among traders interested in acquiring TON, evidenced by two crucial metrics: the Chaikin Money Flow (CMF) and the Relative Strength Index (RSI).
The CMF is a vital technical indicator that evaluates the money flow in and out of an asset. A positive CMF trend indicates an increasing buying interest, a trend currently reflected in TON’s market behavior.
Similarly, the RSI, which gauges the speed and direction of price changes, aligns with this upward pattern. Presently standing at 42.54 and rising, it suggests that TON has the potential for a notable rally, especially upon surpassing the 50 mark.
With the surge in liquidity and a growing bullish momentum, there is a high probability that TON will break through the expected supply zone.
Capital Trends Indicate a Bullish Future for Toncoin
By utilizing the Open Interest (OI) Weighted Funding Rate, CryptoCrypto has ascertained that the prevailing market sentiment is clearly bullish, signaling a strong trend of capital flow in that direction.
The OI-weighted funding rate graph suggests that TON is progressively moving away from bearish territory, indicating an influx of long-position traders entering the market.
Transitioning into the bullish region would confirm that TON is well set to attain its short-term and long-term price objectives of $6.1 and $7.0, respectively.