- Toncoin recently rebounded from a key support level near $4.6, breaking out of a descending channel.
- Derivatives data indicated strong bullish sentiment with high trading volume and open interest.
Toncoin (TON) recently saw a strong rebound from its multi-month support near the $4.6 level. This support has been crucial for the bulls over the past few months as they have protected it, avoiding a deeper downturn.
Over the past few sessions, TON broke out of a descending channel trend, surpassing the 20- and 50-day EMAs at $5.03 and $5.19, respectively. This move showed increasing buying interest in the TON market and gave the bulls a slight advantage in the short term.
Toncoin rose 17% last week
Source: TradingView, TON/USDT
At the time of writing, TON was trading at $5.28 after breaking above the channel’s upper trendline. The 200-day EMA at $5.47 provided crucial resistance.
A definitive close above this level could further fuel the bull rally, potentially opening the door for a test of the $6.05 resistance zone. If TON manages to conquer this zone, we could see an extended uptrend with $6.5 as the next immediate target.
However, if price struggles to break above the 200-day EMA, a pullback could be on the cards, potentially retesting support at the 50-day EMA near $5.04. Price action would likely rebound from this level, opening up the opportunity for traders to capitalize on this short-term volatility.
The MACD indicator has seen a bullish crossover, with the MACD line climbing above the signal line and gaining positive momentum. However, buyers should wait for these lines to close above zero before taking a long position in the short to medium term.
The RSI also stood at 60, reflecting increasing bullish momentum. A move above 70 could signal overbought conditions, so traders should watch for potential consolidation around current resistance.
Derivatives Data Revealed THIS
Source: Coinglass
Toncoin derivatives data showed promising bullish sentiment as volume surged 26.26% to $25.46 million. Open Interest also saw an impressive 22.00% jump, indicating that traders are holding on to their positions amid the recent bull rally.
Interestingly, despite a rise in open interest, the overall long/short ratio stood at 0.6787, favoring short positions. However, this ratio on Binance and OKX for top traders was bullish, at 2.864 and 3.0486.
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Traders should monitor TON’s movement around the $5.47 level, as a close above the 200-day EMA could confirm a bullish breakout, leading to further gains. However, any failure to breach this resistance could result in a pullback towards the $4.86 to $5 area.
Additionally, Bitcoin movement and overall market sentiment should also be considered before making any purchasing decisions.
