The TON cryptocurrency experienced an increase of +100% this end of summer 2023. Let’s see the future prospects for the Telegram messaging cryptocurrency.
Toncoin (TON) situation
In less than a month, the price of Toncoin has more than doubled, from $1.25 to $2.60.
This increase can be partly explained by the latest innovations from The Open Network foundation. It was at $2.6 that the price of the cryptocurrency began to correct. Looking at previous fluctuations at this level, we can see that it has already acted as resistance. TON is now trading just around $2. It is now above its 50 and 200 day moving averages, which tend to form a golden cross. This is intended to be encouraging for a possible bullish continuation. Obviously, Toncoin oscillators indicated bullish momentum. However, it appears that this momentum is about to weaken due to the emergence of a bearish divergence on the RSI.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Currently a trainer at Family Trading, a community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around financial markets in a professional and warm atmosphere.
Focus on derivatives (TONUSD)
The open interest of TON/USD is increasing simultaneously with that of its price, despite significant liquidations of Short positions. This demonstrates a growing interest in cryptocurrency, illustrated by new positions taken, which in theory are predominantly long.
It is interesting to visualize the Liquidation Heat Map on the TON. In fact, the latter highlights three areas with high liquidity. $2.65; $2.5 and $1.8. Upon contact with the latter, this could trigger a large number of deferred orders and/or forced liquidation, which can naturally increase the volatility of ETH at this level.
Hypotheses for the price of Toncoin (TON)
If the price of TON manages to stay above $2, we could anticipate a bullish continuation up to the $2.6 level. The next resistance to take into account, if the bullish movement continues, would be the Toncoin ATH at $2.9. At this stage, this would represent an increase close to +45%.
If the price of TON fails to stay above $2, we could envisage a return to $1.8. The next level to take into account, if the bearish movement continues, would be around $1.5. At this stage, this would represent a drop close to -30%.
Conclusion
It is undeniable, the latest movements of Toncoin demonstrate real interest in cryptocurrency. Now, we can say that the short-term trend of TON is bullish. However, a reversal of the latter is not a situation that can be ruled out. Thus, it will be important to carefully observe the price reaction on the different identifiable levels to confirm or not the different hypotheses made. Beware of potential “fake out” and “market squeeze” in each situation. Additionally, it should be remembered that these scenarios are based solely on technical analysis. The price of cryptocurrencies may change more or less quickly, depending on other more fundamental factors.
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