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TON rallies before retreating amid profit-taking and volume decline

GrafaGrafa2024/08/21 00:55
By:Liezl Gambe

Toncoin (CRYPTO:TON), the cryptocurrency associated with Telegram, briefly led a market rally on Monday, surging nearly 9% during the intraday session.  

However, the upward momentum was short-lived as a spike in profit-taking caused the altcoin's value to dip by 2%.  

Alongside this pullback, TON's trading volume decreased by 17%, reflecting a momentary shift in market sentiment.  

As of the latest data, TON is trading at $6.84.  

Despite the recent dip, technical indicators suggest that this price decline could be temporary, and TON may still be well-positioned to resume its uptrend.  

The coin's price is currently trending towards the Ichimoku Cloud from below, an indicator that tracks an asset’s trend direction, momentum, and key support and resistance levels.  

TON's approach to the cloud in an uptrend indicates that it may be attempting to break out of its bearish trend.  

A successful rally above this cloud, which serves as a resistance level, could confirm a bullish breakout for TON.  

Further supporting this potential bullish scenario is TON's Relative Strength Index (RSI), which is currently trending upwards at 54.83.  

This upward movement in the RSI suggests increased accumulation of TON, indicating that demand for the cryptocurrency remains strong despite recent sell-offs.  

Additionally, the Directional Movement Index (DMI) also points to a bullish bias, with the Positive Directional Indicator (+DI) positioned above the Negative Directional Indicator (-DI), signaling that buyers are currently in control of the market.  

However, this optimism is not reflected in TON's derivatives market, where futures traders continue to show a preference for short positions.  

According to data from Coinglass, the coin's funding rate across exchanges has remained mostly negative, with a current rate of -0.0091%.  

This suggests that more traders are betting against a price rally, which could lead to further declines if bearish sentiment prevails.  

If the downward pressure continues, TON's price could fall to $6.51.  

Conversely, if the current trend persists and TON manages to break through resistance, the price could rise above the cloud to reach $7.52.  

At the time of reporting, the Toncoin price was $6.66.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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