Toncoin’s rising Sharpe ratio, combined with technical and on-chain signals, hints at a potential rally.
- Toncoin’s price action is showing bullish signs, with a breakout above $5.38 signaling momentum. On-chain metrics show increased network growth, suggesting accumulation.
The Sharpe ratio for Toncoin [TON] has been steadily rising over recent weeks, which suggests improving risk-adjusted returns and growing investor confidence in the asset.
The Sharpe ratio, commonly used to gauge the potential rewards relative to risk, indicates that Toncoin’s current price action may be more favorable for long-term growth.
Is TON readying for a rally towards $8?
Is TON’s price action hinting at a bullish reversal?
Toncoin’s price action has been consolidating between $5.14 and $5.38 following a sharp drop earlier in October. This price range highlighted a tug-of-war between buyers and sellers.
However, the price has held steady above $5.14, forming a higher-low structure, a potential sign that buyers are beginning to gain momentum.
If the price manages to break above the $5.38 resistance level, the bullish momentum could take over, leading to a possible rally.
Therefore, the next few sessions will be critical, as they may determine whether Toncoin is set for a breakout.
The Fibonacci retracement levels indicate crucial points for a possible reversal. The 38.2% retracement level at $5.31 and the 50% level at $5.39 are two immediate hurdles.
A successful breakout above these levels would likely propel Toncoin towards the $5.43 resistance.
Consequently, clearing this zone could be a signal that Toncoin is building the foundation for its next leg up, potentially heading towards $8 in the coming weeks.
Source: TradingView
How do TON’s RSI and Bollinger Bands factor in?
Toncoin’s RSI was 56.7 at press time, indicating neutral conditions but leaning slightly toward the bullish side. This reading suggests that there’s still room for upward movement before the market becomes overbought.
Additionally, the Bollinger Bands are showing a squeeze, which often precedes sharp price action. If the price breaks above the middle band, currently near $5.27, we may witness a rally towards $5.50.
Therefore, traders should closely watch the price behavior around these levels.
Source: TradingView
Bullish breakout on the way?
Toncoin’s on-chain metrics provide further encouragement. Net Network Growth has increased by 2.44%, signaling growing adoption and interest in the network.
Additionally, Concentration and Large Transactions have shown slight increases of 0.02% and 0.30%, respectively, suggesting accumulation by larger players.
Furthermore, although In the Money remains neutral at 0.13%, these other metrics suggest underlying bullishness, supporting the argument that a breakout may be imminent.
Source: IntoTheBlock
Given the current technical setup and supporting on-chain metrics, Toncoin looks poised for a potential breakout. If it clears the key resistance levels near $5.43, a rally toward $8 seems more than plausible.
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