Toncoin (TON) Market Heats Up, Gearing up for a Potential Breakout from a Bullish Pennant Flag Pattern

Toncoin’s [TON] market has been heating up lately, with the altcoin gearing up for a potential breakout from a bullish pennant flag pattern.

Toncoin (TON) price has been gearing up for a potential breakout from a bullish pennant flag pattern, as traders anticipate a move towards $7.2 if the altcoin manages to decisively climb past the critical $5.6 resistance level.

At press time, TON price was trading at $5.79, down 1.21% over the last 24 hours, but still above a critical level of support. The token price also hovered above the Fib golden ratio at $5.604.

As evident from the price chart, TON price has been consolidating within a bullish pennant flag pattern, which is a technical formation that often precedes a breakout move. If the altcoin manages to climb decisively above the upper trendline of this pattern, it could signal the start of a strong rally.

In such a scenario, the next target for TON price would be the 78.6% Fib level at $7.207, which could offer traders a potential return of nearly 24% from current levels. However, if the breakout fails to materialize or if there is insufficient buying pressure, the trend reversal could be impacted.

Analyzing TON’s price movement and breakout potential

A closer look at TON’s price action revealed a clear bullish pennant flag pattern, which signaled consolidation ahead of a likely upward move. The $5.6 resistance level served as a critical threshold, and its recent successful retest strengthened the case for a breakout.

If TON climbed above this level with significant buying pressure, the next target could be the $7.2 range, offering substantial returns. However, traders must watch for volume and momentum to confirm the breakout as a failure to sustain these could reverse the trend.

On-chain metrics show growing network activity

On-chain data highlighted increasing activity across TON’s network. Over the past week, new addresses rose by 22.73%, jumping from 167 to 205, while active addresses grew by 14.08% – Hiking from 178 to 203.

Additionally, zero-balance addresses saw a massive 61.7% spike, rising from 330 to 534 – A sign of an influx of new participants.

These metrics suggested that TON’s adoption has been accelerating. However, sustained growth will be essential to maintain investor confidence and support further price appreciation on the charts.

TON’s liquidation data hints at cautious optimism

Liquidation trends revealed a cautious, but optimistic sentiment among traders. Short liquidations totalled $4.83k, compared to $615.64 in longs, showing that market participants remained hesitant to leverage long positions heavily.

However, a confirmed breakout above $5.6 could trigger a cascade of short liquidations, which may amplify upward momentum. Therefore, traders should closely monitor these liquidation levels as a key indicator of market shifts.

Technical indicators signal bullish momentum

Technical indicators supported the bullish case for TON. The RSI had a value of 48.43, indicating neutral momentum but with room for growth. Furthermore, the 9-day moving average at $5.80 was above the 21-day moving average at $5.58 – A sign of a favorable trend.

Combined with the pennant flag setup, these indicators seemed to hint at a market primed for a breakout. However, consistent buying pressure will be critical to sustaining this momentum.

Daily active addresses divergence reflects strength

The price and daily active addresses (DAA) divergence offered some additional optimism. In fact, the DAA at 231% aligned closely with TON’s price action at $5.7.

This narrowing divergence highlighted improving fundamentals, suggesting that TON’s network may be growing stronger alongside its price movement.