After consolidating for several months, the Toncoin price discovers a new price. Let’s take a look at the future prospects for TON.
Toncoin (TON) situation
After reaching a low point around $1 during the summer of 2023, Toncoin attracted buying interest, bringing it back just below its all-time high around $3. From this level, the cryptocurrency began a consolidation phase, forming a symmetrical triangle for more than four months. It is worth noting that this model created an area of significant value. It was necessary to wait until the end of February 2024 for Toncoin to exit this zone from above, thus propelling it to new historic highs.
Currently, one Toncoin is worth $7.5. In the span of seven weeks, TON has seen a 258% rise, while the overall cryptocurrency market has recently lost momentum. Toncoin therefore rebounded from its 50 and 200 day moving averages, confirming the idea that the medium and long term trend of TON is bullish. In terms of cryptocurrency dynamics, it is not surprising to see an upward revision, as shown by oscillators as well as the price of Toncoin itself. While this strengthens the market, it is important to note that this could also indicate an overbought period that could lead to a downward correction.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (TONUSDT)
Open interest on TON/USDT contracts has moved in parallel with its price, which is in an uptrend. Indeed, since April 1, open interest in Toncoin contracts has increased by more than 75%. This growth was marked by liquidations of short positions during bullish periods and liquidations of long positions during bearish periods, all in a context of generally positive funding rates. This suggests that investor interest in TON/USDT perpetual contracts is overwhelmingly focused on buying.
The heat map of TON/USDT liquidations over the past month shows that the liquidation zone around $5.4 has generated notable buying interest in the cryptocurrency. Currently, the most significant liquidation zones are located below the current TON price, with the closest zone identified around $6.5. Further down, the $5.2 area is also worth highlighting. Price approaching these levels could trigger massive orders, increasing the risk of a period of heightened volatility for Toncoin. These areas are therefore crucial points of interest for investors.
Hypotheses for the Toncoin (TON) price
- If the price of TON remains above $5, we could anticipate a bullish continuation up to the level of $8 or even $8.5. The next resistance to take into account, if the bullish movement continues, would be the psychological threshold of $10. At this stage, this would represent an increase of more than +40%.
- If the price of TON fails to remain above $5, we could consider a return to $4 or even $3.5. The next support to take into account, if the bearish movement continues, would be around $2.7. At this point, that would represent a drop close to -64%.
Conclusion
Toncoin has demonstrated remarkable resilience and a sustained uptrend since the summer of 2023, exceeding expectations in recent weeks despite less favorable dynamics in the overall cryptocurrency market. This upward trajectory, supported by various indicators, confirms the strength and long-term growth potential of TON. However, investors should remain vigilant for overbought signals that could precede a correction. Thus, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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Family Trading is a Community of own-account traders active since 2017 offering Lives, educational content and mutual assistance around the financial markets including that of cryptocurrencies with Elie FT, a passionate investor and trader on the crypto market.
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