Aided by spot buying, Toncoin bulls target the $7.5 resistance next

by
  • Toncoin continued to trade within the month-long range.
  • Traders could anticipate a price bounce soon due to rising buying pressure.

As an analyst with a background in technical analysis and experience in following the cryptocurrency market, I believe that Toncoin [TON] is currently trading within a range and could see a price bounce soon due to rising buying pressure. However, it’s important to note that this range has persisted for over a month now, and the mid-range level of resistance at $7.5 has proven to be particularly strong.

On July 5th, Toncoin [TON] made an attempt to bounce back from substantial losses. However, the ensuing week’s trading sessions failed to regain the $7.5 level as a reliable support.

Instead, $7.7 served as resistance and rejected the bulls’ attempts.

As a crypto investor, I’ve encountered quite a few hurdles during my journey, and one of them was the mid-range level of resistance for TON. This resistance level proved to be a significant challenge for buyers looking to push the price higher. Technically speaking, various indicators pointed towards a bearish outlook for TON. However, there were signs that this resistance range might persist, which could potentially create opportunities for both bulls and bears. It’s essential to keep a close eye on market developments and adapt strategies accordingly.

Bulls have not lost the battle yet

As a crypto investor, I’ve noticed that TON‘s price stayed within a particular range between $6.75 and $8.27 throughout a specific period. The midpoint of this range was at $7.5. However, it wasn’t just any midpoint; it also served as long-term resistance for TON. During April and May, TON failed to surpass this resistance level despite multiple attempts.

The cost fell into the cheaper end of the spectrum, as the daily Relative Strength Index (RSI) stood at 43, indicating downward trading pressure. Consequently, it was predicted that Toncoin’s value might decrease and approach $6.75.

As a crypto investor, I’ve noticed that the On-Balance Volume (OBV) has been holding strong at a particular support level since June. Despite the bearish sentiment permeating the market over the past two weeks, I’ve observed the bulls tenaciously defending this level. This resilience highlights some significant buying pressure that has emerged amidst the broader downtrend.

This is why TON bulls can bid a retest of the $6.75 support and hope for a positive reaction.

Speculator sentiment feeble, but spot buyers fuel hopes

Over the last three days, Open Interest has stayed steady at approximately $261 million despite a price rise from $7.2 to $7.4. This stability in trading activity indicates a noticeable lack of bullish confidence among futures market participants.

Read Toncoin’s [TON] Price Prediction 2024-25

As a researcher studying the market trends of TON, I’ve observed that a group of traders have maintained a positive outlook on this cryptocurrency. The daily trading volume for CVD, the spot contract for TON, has been rising steadily since July 9th. This increase can be attributed to the heightened buying pressure experienced in the past two days.

This is a good sign, but it might not be enough to drive a rally past the $7.5 resistance yet.

Read More

2024-07-12 07:03