- Toncoin’s recent surge from its six-month support level has brought the altcoin to a significant resistance point around $6.
- Derivatives data supports a bullish outlook in the short term.
After testing its six-month support area between $4.6 and $4.8, Toncoin [TON] recently experienced a notable bullish rebound. Consequently, the altcoin has risen nearly 22% in the last two weeks, regaining a position above its 20-day EMA ($5.54).
At the time of writing, TON was priced at $5.70. It was attempting to break the long-term trendline resistance that has remained solid since July. A successful breakout above this level could pave the way for further gains in the coming days.
Toncoin rebounds after testing key support—what’s next for TON?
Source: TradingView, TON/USDT
TON’s recent bounce back has led it to a pivotal point on the chart. Should bulls manage to push the price past the $6 resistance (which aligns with the 200-day EMA at $6.03), Toncoin may experience an extended rally toward $6.78 and potentially $7.00 in the short term.
Surpassing these levels would indicate a strong bullish recovery, potentially triggering a wider uptrend.
Conversely, if TON is unable to break the $6 barrier, a retreat towards the $5.54 support (near the 20-day EMA) is likely. A persistent close below this support could lead to a more significant correction, dragging the price toward the $5.00 and $4.86 levels.
Currently, the Relative Strength Index (RSI) stands at 53.50, indicating neutral momentum. The RSI’s position just above the midline suggests buyers are still active, but further upward movement is necessary to confirm additional gains.
It’s noteworthy that the Awesome Oscillator recently crossed above the zero threshold, signaling a minor bullish advantage. Maintaining this position will solidify the bullish sentiment.
Derivatives data revealed THIS
Source: Coinglass
TON’s trading volume surged by +44.39%, reaching $233.38M, indicating a renewed interest in the coin. Open interest also saw a slight uptick of +2.61%, suggesting that traders are keeping their positions open in light of the recent price movements.
While the overall long/short ratio was slightly bearish at 0.9666, the Binance long/short ratio for accounts exhibited a bullish scenario at 2.4638. This indicates that many Binance traders are betting on a continued recovery.
Read Toncoin’s [TON] Price Prediction 2024-25
Similarly, the long/short ratio among traders on OKX was 1.83, further reinforcing the bullish sentiment among significant market players.
Traders should keep a close eye on the RSI and derivatives data for indications of further bullish momentum or potential reversals. Additionally, buyers should consider Bitcoin’s movements and overall market sentiment before making any purchasing decisions.
