Toncoin (TON), the native token of the Telegram Open Network (TON), has caught the eye of traders and investors with a sudden 12% surge in the past 24 hours. This impressive rise has propelled TON to near $7.12, pushing it closer to overcoming a key resistance level at $7.28. Historically, this level has acted as a roadblock for further price increases.
However, a closer look at technical indicators reveals a potential hurdle. The Stochastic Relative Strength Index (RSI) currently suggests an “overbought” zone. This indicator often foreshadows a short-term correction as the market attempts to balance out the rapid price rise.
Growing Bullish Sentiment
Despite the RSI’s warning, on-chain data paints a more optimistic picture. According to IntoTheBlock, large transactions on the TON network are on the rise. This suggests that institutional investors (“big players”) are entering the market, potentially anticipating an ongoing uptrend. This accumulation phase is often a precursor to breakouts, as more investors buy in anticipation of future price increases.
Adding fuel to the fire, data from IntoTheBlock also reveals that over 65% of all TON addresses are currently “in the money,” meaning they are currently holding a profitable position. This positive sentiment could further fuel the bullish momentum.
The Liquidation Pool Factor
While the overall trend appears bullish, there’s a potential roadblock at the $6.9 level. AMBCrypto’s analysis of liquidation data suggests a “price magnet” at this point. If the price falls below $6.9, over 700,000 TON tokens will be liquidated, potentially increasing selling pressure and triggering a short-term pullback. This pullback could act as a buying opportunity for investors confident in TON’s long-term potential.
However, if the current buying pressure persists, TON may bypass the pullback and continue its upward trajectory.
Also Read: Toncoin Price Prediction – Binance Listing Fuels 20% Rally, Breaking Key Resistance
Memecoin Boost?
The recent launch of Ton Dog (TDOG), a memecoin built on the TON blockchain, could be another factor contributing to TON’s price rise. Memecoins, known for their viral nature and community-driven support, can generate excitement and attract new investors to the underlying blockchain. While TDOG itself experienced a slight dip in the last 24 hours, its presence could be indirectly influencing TON’s positive momentum.
The next few days will be crucial for TON. Will the price conquer the $7.28 resistance level, or will the RSI’s “overbought” signal lead to a short-term correction? Regardless, the recent surge in large transactions, high “in the money” addresses, and the potential for a memecoin-fueled boost paint an optimistic picture for TON’s long-term prospects. Investors should closely monitor the market and technical indicators to make informed decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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