TON Price Reversal Incoming? Open Interest Signals a Shift

Toncoin (TON) has seen some price swings lately, and the market is giving mixed signals. As the price tests critical support and resistance levels, traders are keeping a close eye to see if a reversal is coming.

With a noticeable increase in 24-hour trading volume, along with a slight dip in open interest, there are strong indications that a shift in market sentiment could be near.

Toncoin’s Current Price and Market Performance

At the time of writing, Toncoin’s price is $4.85, down a slight 0.81% over the past 24 hours. Even so, the market capitalization is still a hefty $12.06 billion, showing the strength of the overall asset.

Trading volume in the past 24 hours has spiked to $143.78 million, showing a 14.24% increase. This suggests that market participants are either accumulating or taking profits. This activity adds an element of uncertainty to the immediate price action.

Toncoin’s Price Trend: Key Support and Resistance Levels

The price trend for Toncoin has shown significant volatility, swinging between $4.75 and $4.92. A key resistance point has formed around $4.92. Sellers have consistently pushed back at this level, indicating strong selling pressure. A breakout above this price could trigger further upward movement, potentially creating new highs for Toncoin.

Source: CoinMarketcap

On the other hand, support at $4.75 has proven to be a critical level. The price has bounced multiple times from this point, showing that buyers are jumping in to prevent a breakdown. If the price falls below $4.75, however, it could signal further bearish momentum. Then the next level of support might be near $4.70.

Derivatives Market: Open Interest and Sentiment

As per Coinglass data, open interest in Toncoin derivatives has shown a slight decline of 1.30%, bringing it to $168.81 million. But, volume in derivatives has seen a significant uptick, rising by 10.92% to $110.43 million. This could mean that traders are hedging their positions or getting ready for potential price moves.

Also, the long/short ratio of 0.8706 reveals that there is slightly more short positioning than long. This imbalance could create a short squeeze if the price breaks through resistance levels. Liquidation data also signals caution, as the 24-hour liquidations reached $210.02K, with shorts making up more at $114.82K.

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