TON Price Reversal Incoming? Open Interest Signals a Shift

• Toncoin’s price faces resistance at $4.92, signaling potential upward movement.
• Increased volume and declining open interest suggest shifting market sentiment.
• Liquidation data points to caution, with higher short positioning in derivatives.

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.

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.