Toncoin’s rally to $5.804 stalls amid mixed signals

TON

As a seasoned analyst with years of experience navigating the complex world of cryptocurrencies, I find myself intrigued by Toncoin [TON]. The current market situation is reminiscent of a rollercoaster ride, with its share of ups and downs.

Over the last seven days, Toncoin [TON] has experienced some rough waters, plunging by 9.26%. Although there are indications of improvement, advancement has been slow, with only a minor 0.52% increase observed over the past day.

Although the current performance is not impressive, there’s still a hint of hope as AMBCrypto points out the possibility of favorable developments in the future.

Bullish potential for TON

Currently, TON is displaying an inverted head and shoulder formation, which often indicates a surge in positive market movement or bullish trend.

According to the graph, the pattern features three distinct high points: a first, slightly lower peak (referred to as the left shoulder), followed by a higher point (the head), and finally a second, lower peak (the right shoulder).

In simpler terms, a bullish confirmation usually happens when the price rises above the line that links the two dips (or troughs) found between the ‘shoulders’ in a chart pattern. This upward break is often a strong signal suggesting potential price increase ahead.

As an analyst, I’m observing that TON hasn’t broken through its neckline as of now. If it does, this would be a bullish signal, potentially pushing the price up towards $5.804. However, if it fails to do so, we might see a dip back to its October low of $5.139, or even lower prices.

Toncoin’s rally to $5.804 stalls amid mixed signals – What now?

However, assessing on-chain metrics is important to determine whether a breakout is imminent.

Metrics suggest uncertainty

As per Coinglass, the current OI-Weighted Funding Rate stands at 0.0080%, which suggests a generally optimistic outlook within the market.

In simple terms, the OI-Weighted Funding Rate is a method used to evaluate the overall feeling within a market about a particular derivative and the expense associated with maintaining long or short positions. It does this by considering both Open Interest (the total number of outstanding contracts) and Funding Rates (the rate paid or received for holding a position overnight).

Toncoin’s rally to $5.804 stalls amid mixed signals – What now?

Although this indicator may indicate an upcoming bullish trend, the liquidation data seems to suggest stability instead, potentially foreshadowing a possible reversal or bearish shift.

As I analyze the current market trends, it appears that approximately $268,150 has been withdrawn, with $146,960 coming from long positions and $121,190 from short positions. This indicates a fairly evenly distributed market dynamic.

A strong surge in sell-offs by short traders is needed for a bullish breakout to materialize; this should outweigh buy-outs by long traders significantly. If this imbalance doesn’t occur, the price of TON might drop to $5.139.

Reduced supply could fuel a breakout

Over the last week, there’s been a notable reduction in TON tokens being held on various trading platforms. This could potentially influence the way the market behaves.

Read Toncoin’s [TON] Price Prediction 2024–2025

Based on data from Coinglass, it appears that approximately $19 million in TON has been transferred out of trading platforms, indicating that many traders prefer to keep their assets in personal storage instead of liquidating them.

If the downward trend in the exchange netflow persists, it might strengthen the prevailing optimistic outlook in the market. Such a scenario could possibly lead to a market breakthrough.

2024-10-08 06:16

Bullish potential for TON

Metrics suggest uncertainty

Reduced supply could fuel a breakout

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