The price of Toncoin is in danger of a correction after seeing a 34% increase in 2 weeks
The cryptocurrency (Ton) associated with the popular Telegram platform rose 34.50% month-on-month to reach $8.33 on June 14. However, due to the mix of mixed stimuli, it now risks a sharp correction in the remaining period. month.
The price of a ton has approached the overbought region
The continued run in the Toncoin market pushed the daily relative strength index (RSI) to 67.87 – roughly two points below the oversold threshold of 70. This signal typically precedes a ton of price reversals, as shown below.
More negative signals come from ton prices testing multi-week horizontal trend resistance. If a correction comes, the next lower target could be a support combination of the ascending trend line and the 50-day exponential moving average (50-day EMA, red tide) around $6.55.
In other words, tonnage could drop by 20% by the end of June.
Toncoin's increasing OI complements its very low funding.
Continued price growth in the Toncoin market is associated with a significant increase in future open interest (OI). Specifically, it rose to $239.38 million on June 14 from a low of $192.25 million two days ago.
However, Ton's funding rate is -0.22% negative for the week and has been below zero since June 12th. At the same time, the spot price per ton increased by about 18.50%.
Negative funding indicates that short positions are paying off long positions, indicating that there are more shorts than long in the market. In other words, most futures traders are anticipating price drops or bracing for potential drops.
While OI and rising prices indicate a strong bullish trend, negative funding volume and high RSI indicate caution. If shorts cover their positions and the buying pressure subsides, a reversal or consolidation may occur, which may result in a significant price drop.
Ton's Ascending Triangle in July?
The expected tonnage correction in June is part of a consolidating trend in what appears to be a bullish upward triangle continuation pattern.
Related: Travel booking site Travala gets tons of integration
In technical analysis, an ascending triangle rises after the price breaks above the upper trend line and the greater the distance between the higher and lower trend lines. The tone is now approaching the high point of the triangle, thus increasing the possibility of a breakout move soon.
If a breakout occurs, the upside target for a ton would be around $13.30, roughly 65% from current price levels in July.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
