Toncoin’s rally to $8 – Here’s what must happen first!
- TON might rally to $8 if the price breaks out from the resistance level at $7.5
- Metrics seemed to indicate a potential breakout
Toncoin, at press time, was valued at $7.35 on the charts, down almost 4% in the last 24 hours. Its market capitalization stood at $17.8 billion, with its latest price fall corresponding with changes in its volume too.
According to Santiment’s active addresses and market circulation data, Toncoin registered a notable spike in the number of active addresses and circulating supply – A spike that can signal a significant price surge since greater network activity and liquidity typically precedes a breakout.
Active address increased steadily from around 50k in early May to over 75k at press time – A 50% hike in new users interacting with Toncoin’s ecosystem. The circulating token supply gradually increased from 1.9 billion in late April to nearly 2.3 billion too.
With active addresses and circulating supply both climbing, TON is likely to mount a strong rally if it breaks over the $8 resistance level. This level has rejected multiple recent upswings in the past.
Market Value to Realized Value Ratio’s findings
AMBCrypto further analyzed santiment’s MVRV data, with the same pointing to several spikes in late March and May – A sign that investors have been realizing large unrealized gains and taking their profits. At the time of writing, the MRVR was valued below 3, suggesting potential renewal of a bullish impulse if sustained buying pressure builds on the charts.
Tug of war between bulls and bears
Additionally, as per the long/short ratio from Coinglass, there have been frequent oscillations above and below the 1 equilibrium over the past 30 days. In fact, the ratio rose above 1.0 several times, indicating heavy volume on the long position side while temporarily overwhelming the short positions.
What next for TON?
Based on the climbing activity levels, the reasonably valued MVRV, and the ongoing battle between long positions and short positions, the pendulum may tilt in favor of the bulls. Hence, TON can be expected to soon surge past $8.
However, if the bears accumulate enough momentum, the price might just consolidate between $7 and $8.