Toncoin: Bull run continues, but is a correction on the cards?
Journalist
Posted:
- TON’s worth climbed by nearly 90% within the final month.
- Nevertheless, the value ventured into overbought highs, signaling a potential retraction.
Toncoin’s [TON] worth has rallied by over 85% within the final month on account of a seven-fold enhance in energetic TON addresses on the Ethereum [ETH] community, on-chain knowledge supplier IntoTheBlock famous in a current tweet on X (previously Twitter).
The worth of $TON has made a major restoration within the final month. This enhance has additionally resulted in a 7x+ enhance in energetic $TON addresses on the Ethereum community. @ton_blockchain pic.twitter.com/7hfE29HfUt
— IntoTheBlock (@intotheblock) September 19, 2023
Learn Toncoin’s [TON] Value Prediction 2023-24
At press time, the Telegram-endorsed crypto asset exchanged arms at $2.54. Knowledge tracked by CoinMarketCap revealed that TON ranked because the asset with probably the most beneficial properties within the final seven days, with a 38% uptick throughout that interval.
Supply: CoinMarketCap
Aside from the hype surrounding the coin’s integration into Telegram, the value hike within the final month can be attributable to the non-significant correlation TON shares with main coin Bitcoin [BTC].
Throughout the identical interval, BTC’s worth elevated by a mere 3% and continues to face vital resistance on the $26,000 value mark.
Is the tip right here?
TON’s value actions on a each day chart confirmed the state of bullishness amongst the coin’s each day merchants. When the alt’s value started its uptrend, the surge in accumulation put TON consumers above its sellers within the spot market, they usually have since remained in management.
The coin’s Directional Motion Index (DMI), which measures the energy and path of a value motion, confirmed the Constructive Directional Indicator (inexperienced) positioned above the Detrimental Directional Indicator (crimson) at press time.
When the inexperienced line rallies above the crimson line, it signifies that there’s extra upward stress on the value than downward stress, as consumers’ energy exceeds the sellers.
Even though TON accumulators are answerable for the market, the asset has been pushed to overbought ranges. This means {that a} value retraction could also be on the horizon.
When an asset is deemed “overbought,” it may be an indication that it’s due for a correction. It is because the value has risen to an unsustainable stage in the long run.
Reasonable or not, right here’s TON’s market cap in BTC’s phrases
The first indicator of this was TON’s Chaikin Cash Move, which diverged from its value on 6 September. Whereas the asset’s value has rallied since then, its CMF continues to development downwards. This creates a bearish divergence that’s usually interpreted as a promote sign.
Likewise, TON’s key momentum indicators have been stationed at overbought highs that the bulls could be unable to assist. The coin’s Relative Energy Index (RSI) and Cash Move Index (MFI) have been 76.55 and 92.62 at press time. At these ranges, a value pullback is widespread.
Supply: TON/USDT on TradingView
