Crypto: Continued bullishness of Toncoin in sight? Analysis of May 23, 2024

Toncoin recently reached its all-time high and already looks set to surpass it. Let's take a look at the future prospects for TON.

Toncoin (TON) price situation

After experiencing a period of strong buyer interest, Toncoin price reached its all-time high at $7.67. It is at this price level that TON underwent a bearish wave, bringing its price back to the support identified in the analysis of April 11, 2024, around $5. Subsequently, the price rebounded towards the ATH of the cryptocurrency, but faces downward pressure which does not allow its crossing to date.

At the time of writing this article, Toncoin is listed at $6.47. It currently appears to be going through an indecisive period in the short term. In the medium and long term, however, we can rejoice: the structure of the cryptocurrency remains bullish. This can be confirmed by the fact that TON is holding above its 50 and 200 day moving averages. On the side of Toncoin dynamics, a notable recovery is observed, although recently it has been bearish, as evidenced by oscillators and the price of Ethereum itself.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.

Focus on derivatives (TONUSDT)

Open interest in TONUSDT perpetual contracts has run its course. This demonstrates, in principle, a buying conviction on the part of speculators. However, they currently seem reluctant due to the sharper decline in open interest. Concerning liquidations, they are not really significant, although we can emphasize the fact that they mainly concern long positions. As for financing rates, they were clearly negative, highlighting an overvalued underlying asset compared to derivatives. This could be due to increased bearish pressure on TONUSDT contracts. However, now they have become stable again, indicating a certain balance among speculators.

Hypotheses for the price of Toncoin (TON)

• As long as the price of Toncoin remains above $5.6, we can anticipate a return to $7.46 then to its ATH of $7.67. The next resistance to take into account, if the bullish movement continues, would be $8.3. At this stage, this would represent an increase of more than +28%.

• If the price of Toncoin fails to stay above $5.6, we could envisage a return to around $5. The next support to consider, if the bearish movement continues, would be near $4. At this point, that would represent a drop close to -38%.

Conclusion

After a period of high volatility, Toncoin is showing signs of stability. In the short term, uncertainty remains, but the general direction in the medium and long term remains encouraging. Thus, the overall positive trend and recent resilience despite downward pressures suggest potential for recovery and growth in TON. Nonetheless, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current assumptions. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.