Toncoin Tests Key Resistance – Will Bulls Break $7, or Is a Correction Ahead?
The recent surge in Toncoin (TON) price has been driven by the positive impact of Bitcoin ETFs, with the critical $6.8 resistance being a crucial level to watch. If TON fails to break this level, it might briefly drop to $6.1 support before attempting another rise.
Strong Rebound from Support
Toncoin has shown a remarkable rebound from its long-term support near $4.6, bolstered by market-wide recovery and increased interest in altcoins.
Recent price movements delivered a series of green candles, catching traders' attention.
At the time of writing, TON was trading at $6.7, testing its 3-month high.
Will the Rally Continue?
TON’s recent growth led to a breakout from a descending price channel that it had been trapped in since September. This breakout was accompanied by:
Golden Cross: The 20-day EMA crossed above the 200-day EMA, historically signaling potential for long-term growth.
Bullish Sentiment: TON settled above its 20, 50, and 200-day EMAs.
Key Milestones for Bulls:
$6.8 Resistance: A necessary breakthrough for further growth.
$7.6 Level: Another target if TON successfully surpasses its current resistance levels.
Potential Risk of Correction:
If TON struggles to maintain its momentum, the price could drop to $6.1 support, which aligns with a liquidity zone. This level could provide strong support for bulls and attract new buying opportunities.
RSI Indicates Approaching Overbought Territory:
RSI at 69: Suggests that TON is nearing overbought levels.
Traders should watch RSI closely – a dip below 70 could signal consolidation or a minor pullback before the next upward move.
Derivatives Analysis Suggests Caution
Increased Activity:
Trading Volume surged by 69.39% to $444.65 million, highlighting increased activity during the recent rally.
Open Interest, however, dropped by 8.15%, suggesting that some traders may have closed positions to secure profits.
Long/Short Ratio:
Global Ratio: 0.8591, indicating a slight preference for short positions overall.
Binance Ratio: Favorable for bulls at 3.8473, showing optimism among traders on this platform.
Impact of Bitcoin
The broader movements of Bitcoin could significantly impact Toncoin in the short term. Monitoring Bitcoin's trajectory is crucial for assessing TON's potential direction.
Toncoin is currently at a critical juncture that could determine its next growth phase or a potential correction. Traders should closely observe key levels and metrics for effective decision-making.
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