Toncoin bulls have successfully defended the critical $5.19 support level, showcasing resilience despite recent market fluctuations. While the asset failed to break out of its longer-term range, accumulating bullish indicators and a rising On-Balance Volume suggest a potential recovery in the near future.
Toncoin bulls have successfully defended the $5.19 support level over the past month. This level represents a significant milestone as it corresponds to the 50% retracement of Toncoin's impressive rally in February and March 2024. Notably, this level also proved resilient during Bitcoin's surge from $70,000 to $99,000 in November, which saw a 58.4% rally in Toncoin's price.
Despite this strength, Toncoin failed to break out of its longer-term range, leaving investors wondering about the potential for continued bullish momentum or if it's time to explore alternative opportunities.Analyzing the weekly price action, a clear range formation (purple) emerges, spanning from $4.91 to $6.88. The midpoint of this range aligns with the 38.2% retracement level at $5.92, establishing an intermediate resistance point. In December, as Bitcoin bulls exhausted their upward momentum and stalled at around $108,000, Toncoin's price encountered rejection at this six-month range high. While the failure to break out was initially disappointing, the subsequent defense of the lower support levels presented a compelling buying opportunity.Zooming into the daily chart reveals a bearish market structure. Over the past six weeks, Toncoin has established a series of lower highs, accompanied by a daily RSI consistently below the neutral 50 level, indicative of predominantly bearish momentum. However, a glimmer of hope persists for bullish investors. The On-Balance Volume (OBV) has been steadily rising since September, suggesting that accumulation is taking place within this six-month range. This positive development hints at a potential recovery in the near future.Furthermore, lower timeframes reveal a resurgence of bullish sentiment in the market. The Open Interest has climbed from $147 million on Monday, January 13th, to $156.48 million at the time of writing. This increase, following a drop on Monday that triggered a number of long liquidations, showcases the market's strength and resilience. As such, the longer-term bias remains bullish. While volatility is expected in the coming days, the $5.19 support level is likely to hold strong.
TONCOIN Cryptocurrency Price Analysis Support Level Bullish Momentum Technical Analysis Market Outlook On-Balance Volume Open Interest
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