Toncoin [TON] Prepares For A Rally, But A Correction Might Be On Its Way

While most cryptos struggled last week to paint their charts green, Toncoin [TON] acted differently. Things might get even better in the coming weeks

Despite the overall bearish market last week, Toncoin [TON] painted a different picture, with its price increasing by over 1.7% in the last seven days. However, investors might have to be patient as the token might first witness a correction before turning bullish.

CoinMarketCap’s data showed that TON’s price increased by nearly $2 in the last 24 hours. At the time of writing, it was trading at $7.79 with a market capitalization of over $18.9 billion.

Thanks to the price uptick, TON’s weighted sentiment went up, indicating bullish sentiment around the token in the market. Its social volume also spiked, reflecting a rise in its popularity.

Apart from this, AMBCrypto reported earlier how Toncoin outshined Ethereum [ETH]. Our analysis revealed that the number of unique addresses that have completed at least one transaction on Toncoin surpassed that of Ethereum for ten out of the last 12 days.

There was better news for Toncoin, as Ali, a popular crypto analyst, recently posted a tweet pointing out an interesting development.

As per the tweet, TON was getting ready for a bullish breakout, which might allow it to touch $11 in the coming days. However, investors might have to wait a bit in order for TON to complete its consolidation phase.

Therefore, investors might witness TON dropping $7.2 to gather enough liquidity for its upcoming bull rally.

Our analysis of Santiment’s data revealed that buying pressure on TON remained high, which was evident from its rise in its exchange outflow. Its supply on exchanges dropped while its supply outside of exchange increased, indicating high buying pressure.

However, whales chose to sell Toncoin as the supply held by top addresses dropped sharply. This selling pressure from whales might result in TON dropping to $7.2.

We then took a look at TON’s daily chart to better understand whether a slight price correction was on its way. As per our analysis, TON’s price touched the upper limit of the Bollinger Bands, which often results in price corrections.

Additionally, TON’s Relative Strength Index (RSI) was also near the overbought zone. If the indicator enters that territory, selling pressure might rise, which in turn might push the token’s price down.