TON's price action and growing network activity have indicated a promising breakout opportunity.
The bullish flag pattern indicates a potential breakout, with a target price of $7.2.
On-chain metrics and technical indicators have been in line with each other, indicating strong momentum and growing adoption.
Toncoin [TON] The market has been heating up lately, with the altcoin poised for a potential breakout from a bullish pennant pattern. At press time, TON was trading at $5.79, down 1.21% in the past 24 hours, with the token remaining above the critical $5.6 resistance level.
This technical setup has caught the attention of traders, as a successful breakout could push the price towards $7.2. With strong on-chain metrics supporting the bullish outlook, the momentum behind TON seems to be steadily increasing as well.
TON Price Action Analysis and Breakout Possibility
TON price action has revealed a clear bullish pennant pattern, indicating consolidation ahead of a potential upside move. The $5.6 resistance level has been a critical threshold, and its recent successful test has reinforced the breakout case.
If TON rises above this level with significant buying pressure, the next target could be the $7.2 range, offering significant returns. However, traders should monitor volume and momentum to confirm the breakout as failure to hold them could reverse the trend.
TON pa analysis
Source: TradingView Binance
On-chain metrics show growing network activity.
On-chain data highlighted an increase in activity across the TON network. Over the past week, new addresses increased by 22.73%, jumping from 167 to 205, while active addresses grew by 14.08% – going from 178 to 203.
Additionally, zero balance addresses saw a massive 61.7% increase, rising from 330 to 534 – a sign of an influx of new participants.
These metrics suggest that TON adoption has been accelerating. However, sustained growth will be necessary to maintain investor confidence and support further price appreciation on the charts.
TON Address Statistics
Source: IntoTheBlock
TON liquidation data indicates cautious optimism
Liquidation trends revealed a cautious but optimistic sentiment among traders. Short liquidations totaled $4.83k, compared to $615.64k in longs, indicating that market participants are still reluctant to capitalize on long positions significantly.
However, a confirmed break above $5.6 could trigger a series of short liquidations, which could amplify the bullish momentum. Therefore, traders should keep a close eye on these liquidation levels as a key indicator of market reversals.
Source: Coinglass
Technical indicators point to bullish momentum.
Technical indicators supported the bullish case for TON. The RSI was at 48.43, indicating neutral momentum but with room to grow. Moreover, the 9-day moving average at $5.80 was above the 21-day moving average at $5.58 – a sign of a positive trend.
Coupled with the pennant flag setup, these indicators appear to point to a market that is ripe for a breakout. However, continued buying pressure will be crucial to maintain this momentum.
Source: TradingView
The difference in daily active titles reflects the strength
The divergence in price and daily active addresses (DAA) provided some additional optimism. In fact, DAA is 231% in line with TON’s price action at $5.7.
This narrow divergence highlights improving fundamentals, suggesting that the TON network may be gaining strength alongside the price action.
Source: Santiment
TON is well positioned for a breakout, with strong technical indicators and increased on-chain activity. A decisive move above $5.6 would likely push the price towards $7.2, confirming the start of a strong rally.
Simply put, TON's outlook is still very promising as it continues to gain strong momentum.