Toncoin prices surge 28% to cross $5.5 – What next?

    The TON divergence did not see a deep retracement due to heavy demand.
    There was a chance of a short-term reset for Toncoin prices.

Toncoin (TON) has experienced remarkable growth in a short period, surging by nearly 28% within less than 48 hours. This significant increase allowed Toncoin to surpass a crucial resistance point at $5.5, indicating a strong uptrend and potential for further price gains.

According to AMBCrypto’s assessment, although Toncoin looked promising for the long term, the futures market indicated signs of excessive speculation. A potential surge of overextended futures traders might trigger a correction soon.

The breakout occurred on high trading volume, bolstering bullish confidence

The one-day chart of Toncoin exhibits a robust bullish trend. There was a significant increase in trading activity when it surpassed the price mark of $5.68. Over the past two weeks, the $5.55 figure has acted as a local barrier for TON‘s price progression.

During the past month, the RSI displayed lower lows (orange), whereas the price attempted to rise. This bearish divergence did not lead to a fall below the $4.77 mark, which represented the 38.6% Fibonacci retracement level (pale yellow).

In most cases, a pullback in price takes the form of reaching the 61.8% or 78.6% Fibonacci levels. However, in this situation, the buying power was too strong to allow for a more significant pullback. The increasing On-Balance Volume (OBV) served as evidence of this. The potential next goals for the bulls are at $7.15 and $8.05.

There were signs of overextension

On April 8, a powerful wave of buying sentiment swept through the cryptocurrency market, causing TON to break through its resistance at $5.55 and reach a new price of $6.4. According to AMBCrypto’s analysis, the difference between the total liquidation levels was significantly positive.

With many more long positions than short ones, a price decrease could result in significant liquidations and increased market distress.

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The market’s excessive enthusiasm for TON could benefit from a correction around the $7.43 mark, as indicated by the liquidation levels chart prior to a potential price drop.

The $6.41 and $6.27 levels could be visited before a bullish reaction.

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2024-04-09 16:07