Analysis of Toncoin Bull Market Trends

Toncoin has experienced a surge in bullish activity, surpassing both its 20-day and 50-day Exponential Moving Averages (EMAs). This momentum raises the question: is it time for Toncoin buyers to consider long positions?

In its recent upward momentum, Toncoin leaped above the 20-day and 50-day EMAs following a notable uptick in buying pressure. Buyers exerted dominance, leading to a series of green candles as the altcoin reversed its trajectory from the critical $6.9 support level.

If sellers re-emerge in the market and defend the $7.7 resistance level, Toncoin may face a potential retracement towards its high liquidity zone. As of the latest data, Toncoin was priced near $7 on the charts.

Rally Formation and Analysis

Toncoin's rally formed an ascending channel pattern, showcasing a substantial uptrend. Rebounding from the $4.8 support level two months ago, Toncoin witnessed impressive gains of almost 70% in less than two months, reaching a new all-time high of $8.24 on June 15.

Throughout this rally, Toncoin consistently maintained levels above the 20-day and 50-day EMAs, which acted as robust support for over two months. Concurrently, the cryptocurrency established a classic ascending channel on its daily chart.

Presently, the short-term price action reflects low volatility within a high liquidity zone. A close above the middle line of the ascending channel could bolster buyers' momentum in the short term, potentially targeting the $8.2-$8.5 range.

On the contrary, a close below the ascending channel could signal a downside correction in the coming weeks, with sellers eyeing a retest of the $6 level.

Technical Indicators and Warnings

The Relative Strength Index (RSI) has maintained a bullish trajectory, albeit showing a marginal decrease in buying pressure. A decline below the RSI midline could indicate a growing bearish sentiment.

Notably, the On Balance Volume (OBV) exhibited a diminishing or stagnant trend while prices surged over the past ten days. This divergence suggests a potential bearish reversal, hinting at a loss of momentum or a consolidation phase.

Furthermore, a scrutiny of funding rates unveils a favorable position for sellers, with negative funding rates prevailing across all exchanges. Predictive funding rates also lean towards negativity, signaling a mild bearish sentiment.

Conclusion

The OBV divergence, negative funding rates, and potential technical indicators collectively indicate caution for investors. While the bull market has shown strength, early signs of weakening trends call for prudence. Traders and investors are advised to seek further confirmation before holding existing positions or considering new long positions.