Toncoin [TON] has recently shown a notable recovery from its long-standing support around the $4.6 mark. This support level has played a crucial role for bullish investors, preventing a deeper decline in the past few months.
In the latest trading sessions, TON successfully broke out of a descending channel pattern, surpassing the 20-day and 50-day EMAs located at $5.03 and $5.19, respectively. This breakout indicates a growing interest from buyers in the TON market, giving the bulls a slight short-term advantage.
Weekly Gain of 17% for Toncoin
Currently, TON is trading at $5.28 after breaking above the upper trendline of the channel. The $5.47 level, represented by the 200-day EMA, serves as a key resistance point.
A decisive close above this barrier could potentially enhance the ongoing bullish momentum, paving the way for a test of the resistance zone near $6.05. Continued strength may lead TON towards an upward trend with an initial target at $6.5.
However, failure to breach the 200-day EMA might trigger a retracement towards the $5.04 support level near the 50-day EMA. This support bounce could create trading opportunities for investors looking to capitalize on the short-term market fluctuations.
The MACD indicator has signaled a bullish crossover, with the MACD line moving above the signal line and gaining upward momentum. Traders are advised to wait for these indicators to confirm by closing above the zero line before considering long positions in the near to medium term.
With the RSI standing at 60, there is a clear uptrend in bullish momentum. Traders need to be cautious of possible overbought conditions if the RSI surpasses the 70 mark, indicating a potential consolidation phase around the current resistance level.
Insights from Derivatives Data
Derivatives data for Toncoin demonstrates optimistic sentiment as trading volume surged by 26.26% to reach $25.46M. Open Interest also recorded a remarkable increase of 22.00%, reflecting traders’ confidence in holding their positions during the recent bullish upswing.
Despite the rise in Open Interest, the overall long/short ratio stands at 0.6787, favoring short positions. Notably, the long/short ratio on Binance and OKX for top traders indicates a bullish sentiment at 2.864 and 3.0486, respectively.
Traders are advised to closely monitor TON’s performance around the $5.47 level, as a breakout above the 200-day EMA could confirm a bullish trend continuation leading to further price appreciation. Market participants should also consider Bitcoin’s price movements and overall market sentiment before making trading decisions.