Toncoin Faces Correction After 34% Surge
Toncoin (TON), the digital currency linked to the Telegram messaging platform, has experienced a notable increase of 34.50% month-to-date, achieving a value of $8.33 by June 14. Despite this impressive rally, the cryptocurrency now faces potential risks of a substantial decline due to various bearish factors as we proceed through the month.
The recent upward trend in the Toncoin market has driven its daily relative strength index (RSI) to 67.87. This is just shy of the overbought threshold of 70, a level that often precedes significant price drops. Historical data supports this, showing that similar RSI levels have led to sharp corrections in TON’s price.
Another bearish sign comes from Toncoin encountering resistance at a multi-week horizontal trendline. If a price correction occurs, the next support zone is around the $6.55 mark. This area includes an ascending trendline and the 50-day exponential moving average (50-day EMA), represented as a red wave. Consequently, TON could see a 20% decrease by the end of June.
The surge in Toncoin’s price is accompanied by a noticeable rise in its futures market’s open interest (OI). On June 14, the OI increased to $239.38 million from $192.25 million just two days earlier. A negative twist appears in the form of TON’s funding rate, which is at -0.22% per week and has been below zero since June 12. During this period, TON’s spot price has jumped by about 18.50%.
A negative funding rate suggests that short positions are compensating long positions, implying a market sentiment where more traders expect or are preparing for a price drop. While the rising open interest and price point to a bullish trend, the negative funding rate and elevated RSI advise caution. If short positions start closing and buying pressure wanes, TON could see either a price reversal or a stabilization period, potentially resulting in a considerable price fall.
In the larger context, TON’s anticipated market correction in June is part of an ongoing consolidation phase within an ascending triangle pattern, which is generally viewed as a bullish continuation signal in technical analysis. An ascending triangle usually results in a price surge once the upper boundary is breached, with the potential rise being the maximum distance between the triangle’s upper and lower trendlines.
Toncoin is approaching the apex of this triangle, suggesting an increased likelihood of a breakout movement soon. Should this expected breakout occur, TON’s upside target could hit around $13.30, representing a gain of approximately 65% from its current price levels.
While Toncoin has enjoyed a significant price increase recently, the presence of bearish indicators like the possible overbought condition and ongoing negative funding rate raises caution. Investors should keep a close watch on these signals, as they might foreshadow a correction or stabilization before any major breakout. If a breakout occurs from the ascending triangle pattern, Toncoin’s potential for further gains remains strong.
37 thoughts on “Toncoin Faces Correction After 34% Surge”
Leave a Reply
You must be logged in to post a comment.
FOMO can be dangerous. With an overbought RSI and negative funding rate, I’m expecting TON to pull back significantly.
Truly excited about Toncoin’s potential, especially with that ascending triangle pattern. 📈
What a run for Toncoin! Just remember to watch that RSI and funding rate.
Watching TON’s price rise has been thrilling! But let’s stay cautious with RSI levels high. ⚡
Toncoin’s uptrend this month has been amazing! $8.33 is impressive. But let’s keep an eye on those bearish signals. 📉
All I see are warnings left and right. Furthermore, the daily RSI nearing 70 means a potential crash is looming.
Everyone excited about the recent price surge is ignoring the big signs pointing to a heavy correction. Tread carefully!
Sure, we might see a breakout, but there’s too much risk for me. The negative funding rate and resistance levels aren’t something I can ignore.
Toncoins upward trend is great to see! Let’s monitor how it handles the resistance.
Loving TON’s performance so far, but its wise to be cautious with the RSI nearing 70.
Toncoin is outperforming! Let’s stay cautious about the bearish factors ahead. 🧐
Toncoin has had a stellar month! Just be prepared for some pullbacks. 📉
Fantastic performance by Toncoin this month! Keep an eye on that multi-week horizontal trendline.
TON might hit $13.30 at some point, but the immediate future looks rough with all these bearish indicators. I’m out.
I’ve seen this pattern repeat itself. Surging price, followed by a crash when RSI gets near 70. I’m taking my profits now.
Great to see TON’s growth! Let’s hope it can overcome those bearish factors. 🤞
Incredible surge! Hope TON can break out from the ascending triangle soon!
The horizontal trendline resistance is a killer. I wouldn’t be surprised if we hit the $6.55 support zone before any further moves up.
Amazing month for TON! Fingers crossed for that ascending triangle breakout.
The RSI being so close to 70 is a big red flag. I’ve seen this play out far too many times. This rally isn’t going to last!
TON is on fire! A 34.50% increase is something worth celebrating. But always watch for corrections. 🔥
The OI spike is misleading. With a negative funding rate, the market sentiment is bearish. Be cautious, people!
Good month for TON holders! Watch out for those resistance levels though.
Toncoin reaching $8.33 is amazing! Just a heads up about the potential correction zone around $6.55.
Toncoin’s growth is unstoppable! Hoping it can break through the apex soon. 📈
TON’s price might have surged, but the bearish signs are piling up. I’m not buying into the hype when a 20% drop is on the table.
Loving TON’s performance! Investors should be aware of the potential support areas. 📊
Just when it looked like TON was on a roll, the negative funding rate hits! Not a good sign at all. Prepare for a dip!
Great momentum for TON! Investors, brace yourselves for possible market movements. 🌊
Toncoin’s uptrend is impressive! Keeping tabs on the RSI and other signals.
What a month for Toncoin! Hoping the bullish trend continues despite the negative signals.
Toncoin taking off! Big gains so far, but lets not forget the potential corrections ahead.
Excited for Toncoin’s breakout! Though bear in mind, the market can be unpredictable. 🧐
A 34.50% increase sounds great until you look at the RSI. History shows we’re likely in for a steep correction soon.
Toncoin hitting $8.33 is exciting! Let’s just stay cautious about the possible downside. 📊
What a rally! Keeping an eye on those bearish signals as we move forward.
Pay attention to the funding rate. It’s been negative for days, hinting that the bulls are losing their grip. Expect a downturn.