Toncoin [TON] climbs into resistance zone, but momentum favored the bulls
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The lower timeframe structure was bullish after the break above $2.18.
- The bearish breaker on the 4-hour chart would need to be broken before buyers can look to re-enter.
Toncoin [TON] has gained 15.85% in the past week, measured from the swing low at $1.96 that TON registered last Saturday. It appeared likely that bulls could continue to drive prices higher. Yet, Bitcoin [BTC] showed the possibility of a reversal around the $29k area. This could negatively impact TON prices.
Read Toncoin’s [TON] Price Prediction 2023-24
The technical indicators of Toncoin showed strong short-term bullish momentum. The market structure on the four-hour chart also favored the bulls. Yet, the data from the futures market lent some strength to the bearish argument.
The retest of the bearish breaker block could see TON rejected
Source: TON/USDT on TradingView
At the time of writing, TON was trading at $2.238. It has broken above the $2.2 horizontal level of resistance, but it is not yet strongly bullish. TON has formed a series of higher lows over the past week after the drop to $2, as well as broken above the lower high at $2.18.
This made its lower timeframe market structure bullish, but the bearish order block in the $2.25 area highlighted in red could rebuff bullish efforts. The MACD showed strong bullish momentum as it burst out above the zero line. The 21 and 55-period moving averages were on the verge of forming a bullish crossover as well.
Therefore, the expectation was continued bullishness for TON in the next day or two. However, the weekend could see a lack of volume and extra volatility. With Bitcoin also near the $28.7k resistance, TON buyers must exercise caution.
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Short sellers have been strong behind Toncoin recently
Source: Coinglass
This Coinglass chart showed that Open Interest has been on the rise over the past week overall. Meanwhile, the asset itself has trended downward on the price chart. Moreover, both on 23 and 24 March as well as 30 March, we can see that an uptick in the OI was seen whenever the price saw a dip.
This was a strong indication that short sellers were stronger in the market. The funding rate of TON was positive on OKX in recent days, which hinted at some bullish sentiment. Taken together, it gave mixed signals but showed bears could have the upper hand on the lower timeframes.
