Toncoin [TON] faced resistance at the $1.70 region over the past month. The bullish momentum many altcoins saw in the first week of January was inspired by Bitcoin’s [BTC] rally beyond $90k at that time.
While Bitcoin has managed to reclaim $94.5k as support, Toncoin has not exhibited much bullish momentum over the past week, having shed 1.29% over the past week.
In a recent AMBCrypto report, the importance of the $1.70 area was highlighted. A bullish breakout past this level could see a short-term rally ensue, the report concluded.
The on-chain metrics revealed a sizeable uptick in the 90-day MVRV ratio. Further price gains could be capped as holders take profits.
Open Interest had also surged, but the mean coin age was moving sideways. This was a reflection of a lack of network-wide accumulation, which translated to a lack of market conviction.
What the price charts reveal for TON holders
The weekly trend was firmly bearish, as the DMI and the price action showed. The swing point for the bulls to beat on this timeframe was at $3.75, more than double the current market price.
A move beyond this level will signal a bullish long-term trend.
The OBV has not made new lows over the past two months, which was a slight encouragement. The $2.3-$2.4 and the $2.8 levels were the notable supply zones the weekly chart revealed.
Traders’ call to action: Go long and don’t forget to take profits
The short-term bullish momentum was something traders could capitalize on. The OBV and the daily volume bars indicated a flurry of buying from the final week of December.
The imbalance and local supply zone at $1.70 has been flipped to support.
Swing traders can use this flip to buy TON. They need to be cautious and remember to take profits at $2.16 and $2.37, with a drop below $1.56 being invalidation.
Final Thoughts
- Toncoin’s on-chain metrics showed network-wide accumulation was not underway.
- A rally to $2.0 and $2.37 appeared possible in the coming weeks, and swing traders must be ready to take profits during the move.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.