- TON’s ADX stood at 18, indicating weak trend strength despite bullish price action.
- On-chain data revealed that exchanges witnessed an outflow of $2.34 million worth of TON.
Despite ongoing market uncertainty, Telegram-linked Toncoin [TON] appeared bullish and poised for upside momentum.
It formed a bullish price action on the hourly time frame, occurring as the overall crypto market showed signs of recovery.
Current price momentum and technical analysis
TON was trading near $3.35 at press time, having surged over 3.5% in the past 24 hours. Although the asset’s price was recovering, its trading volume dipped by 14%, suggesting cautious trader participation.
According to AMBCrypto’s technical analysis, TON has developed a textbook ascending triangle pattern, a historically bullish indicator, on the hourly chart.
Based on historical price momentum, if the asset breaks out of this pattern and closes a candle above the $3.37 level, there is a strong possibility it could initially surge by 7% to reach $3.60.
Furthermore, if the bullish momentum continues and TON closes a daily candle above the $3.40 mark, the asset could potentially witness a 15% price rally.
Source: TradingView
Despite bullish price action, TON’s Average Direction Index (ADX) was at 18 at the time of writing, which suggested poor strength in terms of price momentum.
Traders’ bullish outlook
Looking at the bullish outlook, traders and investors appeared to share the same sentiment, as reported by the on-chain analytics firm Coinglass.
Notably, traders betting on the long side dominated at press time, and seemed over-leveraged at the $3.184 level, holding $1.50 million worth of long positions.
Meanwhile, $3.40 is another over-leveraged level, where traders held $900K worth of short positions.
Source: Coinglass
$2.34 million worth of TON outflow
Apart from intraday trading activity, long-term holders and investors are also taking advantage of the current market sentiment by accumulating TON tokens.
Data from spot inflows/outflows reveals that exchanges have witnessed an outflow of $2.34 million worth of TON coins during the same period.
Thus, it appears that crypto bulls are strongly supporting TON and could drive the asset’s upcoming rally.
