Toncoin [TON] extends retracement — More shorting gains likely?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Toncoin extended its retracement after another price rejection at the 50% Fib level.
- Open Interest dropped by 5.1% over the past 24 hours.
Toncoin’s [TON] deep retracement from the $2.6 price level continued with another rejection at the 50% Fib level ($2.1). The initial retracement saw TON’s value drop by over 25% between 20 September and 4 October.
Read Toncoin’s [TON] Price Prediction 2023-24
A brief rally ensued on 5 October but it failed to break above the 50% Fib level, leading to an 8% drop over the past 48 hours.
Market structure could flip bearish on higher timeframes
TON’s impressive bullish ride from $1.6 hit a critical price roadblock at $2.6. Ever since, the altcoin has been on a downward spiral with Toncoin wiping out almost half of its bullish gains.
The recent price pump from the 61.8% Fib was flipped to a lower high by bears, as the selling pressure continued to rise. With the price currently trading at $1.98 (61.8% Fib), a break of the level could see TON’s market structure on the higher timeframes become fully bearish.
A break of the dynamic support at the Fib level could see more losses with TON projected to hit the $1.8 price level (78.6% Fib) in the short term.
Meanwhile, the Relative Strength Index (RSI) highlighted the selling pressure, as it remained firmly under the neutral 50. Also, the Chaikin Money Flow (CMF) stayed in negative territory, as capital outflows continued.
Open Interest dipped alongside the price
Data from Coinalyze showed that the Open Interest continued to dip aggressively along with the price. Toncoin’s OI fell another 5.1% over the past 24 hours. This hinted at the formation of a bearish trend in the short term.
How much are 1,10,100 TONs worth today?
Although the funding rate was positive, it had little effect on speculators with the market leaning bearish on TON.