tl;dr
The price of Toncoin (TON) has been stable, trading between $5.96 and $5.37 despite market fluctuations. However, two key on-chain metrics suggest a potential short squeeze, indicating a possible upward price trend. The open interest delta has turned positive, showing increased market activity, whil...
TON's price has remained stable, but may face a potential short squeeze. Positive open interest delta and negative funding rate indicate conflicting market sentiment for TON.
TON is showing a strong uptrend, but faces potential resistance at $8.02 and support at $4.44.
The price of Toncoin (TON) has been stable, trading between $5.96 and $5.37 despite market fluctuations. However, two key on-chain metrics suggest a potential short squeeze, indicating a possible upward price trend.
The open interest delta has turned positive, showing increased market activity, while the negative funding rate implies a bearish outlook. This combination may lead to increased volatility and a potential short squeeze.
Toncoin is currently trading at $5.88, with the Aroon Up Line indicating a strong uptrend. If the rally continues, the price could reach $8.02, but a negative market sentiment could lead to a drop to $4.44.
Toncoin’s (TON) price has remained relatively stable over the past week. Trading between $5.96 and $5.37, the altcoin has maintained this range despite broader market fluctuations.
However, this trend may soon be disrupted as two key on-chain metrics point to a potential short squeeze. This analysis explores what TON holders should anticipate as this unravels.
A short squeeze occurs when a sharp rise in an asset’s price forces traders who have bet against a cryptocurrency by taking short positions to buy it back at higher prices, further driving it up and increasing market volatility.
Toncoin’s open interest delta measures the changes in its open interest over a set period. It helps traders determine whether new money is entering the market or if existing positions are being closed.
However, while Toncoin’s open interest delta is positive, its negative funding rate across cryptocurrency exchanges presents an interesting situation that may impact Toncoin’s price in the near term.
A combined reading of these metrics presents a situation in which, on the one hand, investors are confident that Toncoin’s price will continue to rally, while on the other, many traders still expect the price to fall. According to Wedson, this scenario could result in a “potential short squeeze, a shift in sentiment, and increased volatility.”
Toncoin is currently trading at $5.88, with its Aroon Up Line showing a strong uptrend at 92.86%. This indicator, which measures the strength of a price rally, suggests that Toncoin’s recent high was reached not long ago.
When the Aroon Up Line approaches 100%, it signals a robust upward trend. If Toncoin’s rally continues, it could gain 51%, pushing its price past the key resistance formed at $8.02 at securing the new all-time-high. However, if market sentiment turns negative, Toncoin’s price could drop to $4.44, negating the current bullish outlook.