TON secures top gainer spot with 7% jump, but market signals caution ahead

Toncoin’s price rose by 7% on the morning of August 19, making it the top performer in the cryptocurrency market.

At the time of writing, Toncoin (TON) was still up 6%, changing hands at $6.92, according to price data from crypto.news. The crypto asset’s daily trading volume increased by 143% to hover around $568 million, while its market cap reached $17.3 billion, placing it in 9th place among the largest cryptocurrencies.

TON 24-hour price chart – August 19 | Source: crypto.news

The current price of Toncoin places it above the middle Bollinger Band at $6.3421 and significantly higher than the lower band at $5.4265. This puts the coin in a relatively strong position in the recent trading range, but it still remains below the upper Bollinger Band at $7.2578.

TON 1D chart – August 19 | Source: crypto.news

The positioning suggests a significant rebound from the lows, but the cryptocurrency is still far from reaching the overbought territory, suggesting there could be additional room for upward movement before it encounters significant resistance.

On the Directional Movement Index, the +DI line, which indicates the strength of upward price movements, stands at TON 24.8112 and crosses the -DI line at 18.8496, indicating that recent price movements have been mostly bullish. However, the average DI line at 24.7785 indicates the presence of a strong trend overall.

Typically, when the ADX value is above 25, it indicates the strength of an uptrend or downtrend. In this case, a rising ADX alongside a dominant +DI relative to a -DI reflects strong bullish momentum, but this momentum should be watched carefully for any shifts that could suggest increasing bearish pressures.

Current market dynamics show a clear uptrend with potential for further price gains, supported by strong trend strength as indicated by the ADX and DI lines. However, caution is advised as proximity to the upper Bollinger Band could signal impending resistance or a possible shift in market sentiment.

According to data from CoinGlass, total open interest in Toncoin increased by 14.7% in the last 24 hours, from $246.83 million to $283.03 million. This shows that investors are showing increasing interest in TON as the price recovers.

Toncoin RSI suggests a cautious outlook

The Relative Strength Index also supports a cautious outlook. With an RSI of 55.58, TON is neither overbought nor oversold. This neutral reading means there is no immediate risk of a sharp reversal due to overvaluation.

TON price and RSI – August 19 | Source: crypto.news

The current RSI for Toncoin does not clearly indicate that the recent uptrend will continue. The RSI is at a level that suggests the price can move in either direction without being considered overextended.

Toncoin’s recent price surge coincided with higher trading volumes, suggesting significant buyer interest. However, a future decline in trading volumes while prices remain elevated could indicate that the upward momentum is losing steam, potentially leading to a price correction.

It is of great importance to monitor the trading volume and the Directional Movement Index lines; a significant decrease in volume or a negative directional indicator -DI exceeding the positive directional indicator +DI may signal an impending correction.

On the other hand, if trading volumes remain high and +DI continues to rise, this could support further price gains. While the rally has been impressive, mixed signals from these technical indicators warrant careful observation for any signs of a possible reversal and suggest caution should be exercised even if the rally is not over.