Toncoin (TON) has one of the most promising charts among the top 30 cryptocurrencies by market cap, thanks to its latest performance.
At press time, TON is up by more than 1% and is now trading near $1.4.
The coin has recovered 4.5% over the past two days, following last week’s massive correction.
The derivatives data also shows improved sentiment, with increasing long bets and its funding rates turning positive.
The technical indicators also show early signs of recovery for TON, which could see it rally higher in the near term.
Retail demand returns for TON
TON has outperformed the broader cryptocurrency market this week after adding nearly 5% to its value since Monday.
Crypto markets extended losses on Tuesday, with prices sliding sharply as a broader sell-off in technology stocks and financials unfolded and investors moved deeper into a risk-off posture.
TON’s rally is supported by derivatives data, with the bulls regaining control of the market.
According to CoinGlass, Toncoin’s long-to-short ratio reads 1.06 on Wednesday and has been steadily rising.
This ratio crossing 1.0 reflects bullish sentiment in the markets, with more traders betting on TON’s price to rally higher in the near term.
CoinGlass data also shows that TON’s OI-Weighted Funding Rate is positive, with the number of traders betting that the price of TON will slide further being lower than that anticipating a price increase.
The metric flipped positive earlier today and currently stands at 0.0045%, indicating that longs are paying shorts and supporting recovery chances.
TON eyes $1.5 after retesting the daily support
The TON/USD 4-hour chart is bearish and efficient, thanks to Toncoin correcting by more than 11% last week.
The correction saw TON retest the daily support level at $1.31.
The daily support level has held, and TON has now added 5% to its value since the start of the week. At press time, TON is trading around $1.40.
If the recovery continues, TON could extend its rally towards the 50-day Exponential Moving Average (EMA) at $1.59.
The momentum indicators indicate that TON’s recovery is strong.
The Relative Strength Index (RSI) on the 4-hour chart reads 49, rebounding from the oversold conditions and pointing upward, indicating a growing bullish momentum.
However, for the recovery rally to be sustained, the RSI must move above the neutral level.
In addition to that, Moving Average Convergence Divergence (MACD) is also converging below the neutral level, adding further confluence to the bullish momentum.
However, if the bulls fail to sustain the recovery effort, TON could face a correction in the near term.
The correction could see TON extend its decline toward the daily support at $1.31.
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