Toncoin Price Analysis: TON Price Plummets 5% as Bears Seize Market Control

Toncoin Price Analysis

After recording an all-time high of $7.78 in the last 3 days, the Toncoin (TON) price has been on a correction, with traders taking profits from the recent surge. This correction, however, has yet to erase the previous gains, with TON still up 17% in the last week, 26% in the previous month, and a 343% rally in the last year.

TON/USD 24-hour price chart
Source: CoinMarketCap

In the last 24 hours, however, the bears have had the upper hand, with prices swaying between an intra-day high and low of $7.74 and $6.84, respectively. This correction is attributable to the recent report on US employment, which negatively pressures risk assets such as cryptocurrencies. The report highlighted that 272K jobs were added in May compared to the anticipated 185K jobs, decreasing the chances of FED’s interest rate cuts.

At press time, TON was still in a bear rally, with price trading at $7.31, a 5.31% decline from the 24-hour high. Concurrently, TON’s market capitalization decreased by 5.37% to $17,787,732,026, while the 24-hour trading volume surged by 36% to $466,015,032. This surge in the trading volume suggests that traders are taking advantage of the dip to accumulate.

Subsequently, TON’s derivatives data experienced a 45% surge, according to Coinglass, despite the market downturn. This surge reflects a rising trading and potential interest in Toncoin futures, which is a bullish sign.

TON Derivatives Data
TON Derivatives Data

However, with open interest down 15% alongside the rising volume, this suggests that some positions are being closed rather than new positions being opened, which indicates market uncertainty and changing market sentiment. Concurrently, the medium-term liquidations are higher for short positions than for longs on the Rekt Analysis. This trend suggests that despite the short-term bearish pressure experienced in the TON market, the medium-term momentum is still leaning towards a bull trend as shorts get squeezed.

TON/USD Technical Analysis

On the TONUSD 24-hour price chart, the Relative Strength Index (RSI) rating of 63.05 suggests that despite the current bearish momentum, bulls still have a chance at a reversal. If the RSI manages to hold above its signal line, a recovery would be on the way since the trend would mean a shifting sentiment towards a bull rally.

Moreover, since the Rate of Change (ROC) is still in the positive region with a rating of 13, money flowing in the market is adequate to establish a bullish recovery. If the ROC, however, falls toward the negative region, traders may consider setting stop-loss orders to prevent further losses.

TON/USD 24-hour price chart
Source: TradingView

In addition, the Moving Average Convergence Divergence (MACD) positive trend backs the bullish momentum having the upper hand. The higher bars on the MACDs histogram also point to recovery since it suggests an increasing buying pressure.

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