Toncoin (TON) prices have been trading in a bullish pennant pattern.

The pattern signals a potential continuation of its current uptrend. The altcoin prices have had a three-day bullish run since the 8th of May.

Toncoin [TON] prices have been trading in a bullish pennant pattern since the 8th of May. The pattern signals a potential continuation of its current uptrend. However, momentum shows signs of exhaustion as the asset tests a crucial pennant resistance at the round $3.5 price level.

A renewed breakout could result from a bullish rally above the key price point. But so far, TON bulls are finding themselves struggling to get over it, making price movement lag just shy of the resistance zone.

Whale activity sparks bullish signals

Interestingly, while price stalls, on-chain signals suggest growing accumulation. As of Monday morning, saw TON’s large transactions spike by 84%, to reach $6.12 billion.

That kind of spike usually reflects whale or institutional activity, often a precursor to major moves. The increased transaction volume suggests that the TON key players could be positioning for a breakout.

Liquidation cluster may act as rocket fuel

Adding to the bullish case is the Coinglass liquidation data. At the $3.66 level, over $999K in liquidations are clustered. This level lies just above the current resistance and could act as a price magnet to pull the price even higher.

If TON manages to break out above $3.5, it could trigger a cascade of liquidations, pushing the price even higher. Traders caught in short positions may be forced to buy back TON, adding further fuel to a possible rally.

What’s next for TON?

For Toncoin (TON) bulls, the focus now is a strong close above the $3.5 level of resistance. If so, focus will shift to the $3.66 area as the next closest target.

Bullish pennant, whale accumulation and leverage liquidation all point to a potential bullish run. However, until the break materializes, there might still be a consolidation in the market.