Toncoin’s short-term bullish momentum will not cause a complete reversal of the past six months’ losses.
Toncoin [TON] faced resistance at the $1.70 region over the past month. The bullish momentum many altcoins saw in the first week of January was inspired by Bitcoin’s [BTC] rally beyond $90k at that time.
While Bitcoin has managed to reclaim $94.5k as support, Toncoin has not exhibited much bullish momentum over the past week, having shed 1.29% over the past week.
In a recent AMBCrypto report, the importance of the $1.70 area was highlighted. A bullish breakout past this level could see a short-term rally ensue, the report concluded.
The on-chain metrics revealed a sizeable uptick in the 90-day MVRV ratio. Further price gains could be capped as holders take profits.
Open Interest had also surged, but the mean coin age was moving sideways. This was a reflection of a lack of network-wide accumulation, which translated to a lack of market conviction.
What the price charts reveal for TON holders
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Source: TON/USDT on TradingView
The weekly trend was firmly bearish, as the DMI and the price action showed. The swing point for the bulls to beat on this timeframe was at $3.75, more than double the current market price.
A move beyond this level will signal a bullish long-term trend.
The OBV has not made new lows over the past two months, which was a slight encouragement. The $2.3-$2.4 and the $2.8 levels were the notable supply zones the weekly chart revealed.
Traders’ call to action: Go long and don’t forget to take profits
Source: TON/USDT on TradingView
The short-term bullish momentum was something traders could capitalize on. The OBV and the daily volume bars indicated a flurry of buying from the final week of December.
The imbalance and local supply zone at $1.70 has been flipped to support.
Swing traders can use this flip to buy TON. They need to be cautious and remember to take profits at $2.16 and $2.37, with a drop below $1.56 being invalidation.
Final Thoughts
- Toncoin’s on-chain metrics showed network-wide accumulation was not underway. A rally to $2.0 and $2.37 appeared possible in the coming weeks, and swing traders must be ready to take profits during the move.
Next: Cardano under pressure as whales buy 210 mln: Breakout or fake out, what’s ahead?
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