In the midst of an ongoing market reversal, Toncoin (TON), which is associated with Telegram, has successfully broken out from a prolonged consolidation phase. This breakout has been supported by on-chain metrics that are now indicating a strong buy signal. Prior to this significant price movement, TON had been trading within a narrow range between $5.38 and $5.80, hovering close to the $5.75 resistance level for the last two weeks.
TON Price Momentum
The breakout witnessed today has altered the overall market sentiment positively. At the time of writing, TON is trading near the $5.90 mark, reflecting a price surge of over 4.5% within the past 24 hours. Concurrently, its trading volume has increased by 6.5%, showing a steady rise that indicates renewed interest from traders and investors. One potential catalyst behind this price rally could be the bullish market sentiment coupled with the anticipation of an upcoming airdrop scheduled for October 2024.
Toncoin Technical Analysis and Upcoming Levels
Expert technical analysis suggests that TON is displaying bullish characteristics. It is currently trading above the 200 Exponential Moving Average (EMA) on a daily timeframe, which signifies an ongoing uptrend. The 200 EMA is a widely used technical indicator that helps traders and investors determine the overall trend direction of an asset.
Based on historical price momentum and the recent breakout, there is a strong possibility that TON could ascend by another 20%, potentially reaching the $7 level in the coming days. However, this bullish outlook will hold true only if TON manages to close its daily candle above the $5.90 level. Failing to do so may invalidate this optimistic forecast.
Bullish On-Chain Metrics
TON’s bullish sentiment is further reinforced by promising on-chain metrics. According to Coinglass, the current TON Long/Short ratio stands at 1.035, which indicates a strong bullish sentiment among traders. Additionally, the future open interest for TON has risen by 5.7% over the past 24 hours, suggesting that traders are increasingly building long positions over short ones.
As Toncoin continues to exhibit these positive trends, it becomes crucial for traders and investors to keep an eye on these technical and on-chain metrics. The coming days will be pivotal in determining whether TON can sustain its upward momentum or if it will encounter new resistance levels.
