Toncoin (TON) has seen a significant surge of 34.50% so far this month, reaching $8.33 on June 14. However, there are concerns that a sharp correction may be on the horizon due to various bearish factors.
The price of TON is approaching overbought territory, with its daily relative strength index (RSI) currently at 67.87, just below the overbought threshold of 70. Historical data suggests that when the RSI reaches this level, TON often experiences steep price pullbacks.
Additionally, TON’s price is currently testing a horizontal trendline resistance that has been in place for several weeks. If a correction occurs, the next support level to watch is around $6.55, where an ascending trendline and the 50-day exponential moving average intersect.
The rise in TON’s futures open interest to $239.38 million on June 14 indicates growing interest in the cryptocurrency. However, the funding rate for TON futures is negative at -0.22% per week, indicating that short positions are paying long positions. This suggests that many traders are hedging against potential price drops.
While the increasing open interest and price suggest a bullish trend, the negative funding rate and high RSI signal caution. If short positions are covered and buying pressure decreases, a reversal or consolidation could occur, leading to a significant price decline.
Looking ahead, TON’s current correction phase in June may be part of an ascending triangle bullish continuation pattern. If the price breaks above the upper trendline of the triangle, TON could see a breakout move in July. This could potentially push the price up to around $13.30, a 65% increase from current levels.
It’s important to note that this article does not provide investment advice. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.