[This is why Toncoin will soon encounter Gakong]
Toncoin’s trend may change as two on-chain indicators point to potential short covering. Short covering occurs when an asset price rises sharply, forcing short sellers to buy back, pushing the price even higher. CryptoQuant’s Joao Wedson noted that Toncoin’s 30-day open interest delta and negative funding rates show this trend.
Delta Open Interest measures changes in open interest, which turned positive in the last 30 days, indicating increased market activity. However, negative funding rates indicate that traders are paying fees to maintain short positions, indicating that parts of the market are still bearish. These two indicators combined show that some investors are confident in price increases, but many traders also expect prices to fall, which may lead to short covering and increased market volatility.
The current price of Toncoin is $5.88, and the Aroon ascending line shows a strong upward trend reaching 92.86%, indicating a clear upward trend in the near future. If this trend continues, Toncoin could rise another 51%, breaking the $8.02 resistance and reaching a new all-time high. But if the market turns negative, the price could fall back to $4.44, breaking current bullish expectations.
