Toncoin (TON) has been experiencing a volatile period, with its price fluctuating in recent weeks. Despite a slight uptick in the past 24 hours, the overall trend has been downward. However, there are indications that a bullish reversal may be on the horizon.
A Bullish Pattern Emerges
On the daily chart, TON has formed an inverse head and shoulders pattern, a classic technical analysis formation that often signals a potential bullish reversal. If TON breaks above the neckline of this pattern, it could initiate a significant price increase, potentially reaching $5.804.
On-Chain Metrics: A Mixed Bag
While the inverse head and shoulders pattern suggests a bullish outlook, on-chain metrics present a more mixed picture. The OI-Weighted Funding Rate remains positive, indicating bullish sentiment among traders. However, the recent liquidation data suggests a more neutral market, with no clear dominance of either long or short positions.
Negative Exchange Netflow: A Potential Catalyst
A significant amount of TON has been withdrawn from exchanges in recent days, indicating that traders may be holding their assets privately. This negative exchange netflow could contribute to a bullish breakout if it continues.
Conclusion
Toncoin’s future price movement is uncertain, but the formation of an inverse head and shoulders pattern and the negative exchange netflow suggest a potential bullish reversal. However, the market remains cautious, and a significant increase in short liquidations is needed to confirm the bullish trend. Investors should closely monitor on-chain metrics and technical indicators to make informed decisions.