Benefiting from a broader market rebound and renewed buying interest in the altcoin market, Toncoin [TON] has strongly rebounded from its long-term support level near $4.6.
With a series of bullish candles and a strong breakout above key resistance levels, TON has successfully attracted the attention of traders. As of the time of writing, TON is trading at $6.7, while also testing its 3-month high.
Will Toncoin continue to rise?
The latest surge for this altcoin has seen its price break out of the downward channel it has been trapped in since September.
The latest round of increases marks a golden cross, with the 20-day EMA crossing above the 200-day EMA—historically, this suggests the potential for a long-term uptrend. Furthermore, after noting some healthy bullish sentiment, the altcoin has found a comfortable position above its 20, 50, and 200-day EMAs.
The next milestone for the bulls will be to see the 50-day EMA cross the 200-day EMA. A successful crossover could lay the foundation for a sustained bullish rebound, with the first major resistance at $6.8, followed by $7.6.
However, if TON struggles to maintain its current momentum, a short-term pullback could test the support area around $6.1. This support level seems to align with a liquidity area, providing a decent safety net for bulls. A successful rebound from this support level could reignite buying pressure.
As of the time of writing, the Relative Strength Index (RSI) is close to 69, indicating that Toncoin may be approaching overbought territory. Traders should closely monitor the RSI—any movement below 70 could lead to a period of consolidation or a slight pullback before the next potential rise.
The derivatives analysis of Toncoin reveals this.
Trading volume surged by 69.39%, reaching $444.65 million, indicating increased trader activity during the recent uptrend. However, open interest decreased by 8.15%, suggesting that some traders may be closing positions, perhaps to lock in profits after the recent rise.
The long/short ratio for TON across exchanges is 0.8591, indicating that overall short positions have a slight advantage. However, Binance's long/short ratio is more favorable to longs, at 3.8473, suggesting that traders on that exchange are optimistic.
Additionally, the largest trader long/short ratio for TON on Binance is 4.5 for accounts and 2.38 for positions.
You should also monitor the overall trend of Bitcoin, as it may impact the trend of TON in the short term.