Toncoin’s recent upward trajectory has continued, building on a week of consistent growth since its Coinbase debut.
The surge has brought TON’s price close to a significant resistance point at $1.705, a level that has previously acted as a ceiling and limited previous price increases.
Though the overall trend appears bullish, the approach to this level has sparked some short-term volatility in the token’s price action.
Short-term imbalance raises caution
On the daily chart, TON’s recent bullish surge has created a market imbalance around $1.57. This level might draw down the price for a short-term correction to fill the gap if the current momentum wanes.
Simultaneously, the Stochastic RSI has entered overbought territory, indicating the rally could require a pause before the next significant price movement.
The stochastic RSI affirms the likelihood of a short-term correction to the imbalance zone.
However, this configuration does not automatically imply weakness. Instead, the market might be due for a short-term pause or dip as it processes the recent upward movement.
Source: TradingView
Bullish sentiment is evident in…
Even with some short-term caution from the technical indicators, the derivatives indicators still favor buyers.
Toncoin’s Open Interest has risen by 7.27% to 103 million, indicating more institutional traders and investors are still playing the long game by opening new positions.
Source: Coinalyze
Significantly, long positions at the current price now outnumber short positions by almost three times. At press time, the token’s Long/Short Ratio stood at 2.976.
This disparity implies that traders are still betting on further gains, not an immediate downturn.
Source: Coinalyze
Can price break through resistance?
Looking at the broader picture, TON’s price trajectory will depend on how it reacts around the $1.705 key price level.
A decisive move above this supply zone could signal a significant change in the market’s structure, potentially paving the way for a prolonged upward trend.
In the meantime, short-term fluctuations near existing imbalances are still a possibility.
Nevertheless, the bullish momentum seems to be holding, as long as long-position investors remain active and open interest keeps climbing.
Final Thoughts
- TON prices are approaching a major supply zone at $1.705 after a week of steady gains.
- Open interest is up 7.27%, with long positions outpacing shorts at the current price.
Source: https://ambcrypto.com/can-toncoin-break-above-1-705-and-extend-its-rally-examining/
