Toncoin (TON) Bulls Aim to Reclaim $6 as MACD Flashes Bullish Crossover

Toncoin [TON] recently experienced a strong rebound from its multi-month support near the $4.6 level. This support has been crucial for bulls over the last few months as they protected it, staving off a deeper downturn.

Toncoin [TON] price analysis reveals a strong rebound from a crucial support level, showing bullish momentum. Here's a closer look at the recent price action and technical analysis.

Crucial Support and Resistance Levels

Toncoin price recently found strong support at the $4.6 level, which has acted as a crucial pivot point throughout the past few months. Bullish traders managed to protect this support, preventing a deeper downturn in the market.

After bouncing off this support level, TON price surged past the 20-day and 50-day EMAs at $5.03 and $5.19, respectively, breaking out of a descending channel pattern. This price movement showed an increasing buying interest in the TON market, giving bulls a slight near-term edge.

At the time of writing, TON was trading at $5.28 after breaching the upper trendline of the channel. Next, the 200-day EMA at $5.47 served as a crucial resistance.

A definitive close above this level could further fuel the bullish rally, potentially opening doors to test the $6.05 resistance zone. If TON manages to conquer this zone, we could see an extended uptrend with $6.5 as the next immediate target.

However, should the price struggle to break above the 200-day EMA, a pullback could be on the cards, potentially retesting the support at the 50-day EMA near $5.04. The price action would likely rebound from this level, opening up opportunities for traders to capitalize on this near-term volatility.

Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD)

The MACD indicator showed a bullish crossover, with the MACD line climbing above the signal line and gaining positive momentum. However, buyers should wait for these lines to close above zero before taking a long position in the near-to-medium term.

The RSI also stood at 60, reflecting a rising bullish momentum. A move above 70 could signal overbought conditions, so traders should monitor potential consolidation around the current resistance.

Derivatives Data: Volume, Open Interest, and Long/Short Ratio

Toncoin’s derivatives data showed bullish sentiment as volume surged by 26.26% to reach $25.46M. Open Interest also saw an impressive jump of 22.00%, indicating that traders are holding onto their positions amid the recent bullish rally.

Interestingly, despite a rise in Open Interest, the overall long/short ratio stood at 0.6787, favoring short positions. However, this ratio on Binance and OKX for top traders was bullish, at 2.864 and 3.0486.

Traders can use this data to gauge the market sentiment and identify potential buying or selling opportunities.