Will Toncoin bulls reclaim their edge after this rally?

• Toncoin’s recent rally from its six-month support has positioned the altcoin at a crucial resistance level near $6.
• Derivates data reaffirmed bullish edge in the near term.

After testing its six-month support range near $4.6-$4.8, Toncoin [TON] recently witnessed a strong bullish rebound. As a result, the altcoin jumped nearly 22% over the past two weeks and reclaimed a spot above its 20-day EMA ($5.54).

At press time, TON was trading at $5.70. It was attempting to challenge the long-term trendline resistance, which it has held firm since July. A breakout above this resistance could set the stage for further gains in the days ahead.

Toncoin rebounds after testing key support—what’s next for TON?

Source: TradingView, TON/USDT

TON’s recent recovery has positioned it near a critical point on the chart. If bulls push the price above the $6 resistance (coinciding with the 200-day EMA at $6.03), Toncoin could see an extended rally toward $6.78 and potentially $7.00 in the near term.

Breaking these levels would affirm a strong bullish recovery, opening the door for a broader uptrend.

However, if TON fails to break above the $6 level, a pullback toward the $5.54 support (near the 20-day EMA) is likely. A sustained close below this support could trigger a deeper correction, pulling the price back toward the $5.00 and $4.86 levels.

The Relative Strength Index (RSI) currently stood at 53.50, reflecting neutral momentum. The RSI’s position just above the midline suggests that buyers are still in the game, but they need to push higher to confirm further upside.

It’s worth mentioning that the Awesome Oscillator recently closed above the zero level, showing a slight bullish edge. A continued position above this level will reaffirm the bullish bias.

Derivates data revealed THIS

Source: Coinglass

TON’s volume surged by +44.39% and reached $233.38M, reflecting renewed interest in the coin. Open interest also saw a slight increase of +2.61%, indicating that traders still kept positions open amid the recent price action.

Although the overall long/short ratio was slightly bearish at 0.9666, the Binance long/short ratio for accounts exhibited a bullish scenario at 2.4638. This indicated that numerous Binance traders placed their bets on a sustained recovery.

Read Toncoin’s [TON] Price Prediction 2024-25

Similarly, the trader’s long/short ratio on OKX was 1.83, reinforcing the bullish bias among key market participants.

Traders should closely monitor the RSI and derivatives data for signs of further bullish momentum or a reversal. Buyers should also consider Bitcoin’s movements and the overall sentiment before making any buying decisions.