Toncoin (TON) Poised for Rebound as Short Positions Build
Toncoin (TON) is displaying signs of a potential rebound on the 4-hour chart, following a sharp decline in September. The cryptocurrency has been trading within a symmetrical triangle, with a sharp build-up of short positions. Dmitry Chernovolov, the author of an analysis report, has highlighted this development.
Over the past week, TON has been trading within a range of $2.50 to $3.40, with heavy liquidation zones near $2.70 to $3.00. If momentum shifts, the current setup favors bulls and increases the likelihood of a sharp short squeeze. TON has fallen more than 50% year-to-date, dropping from $4.20 to $2.60 in the past three months. A confirmed breakdown below $2.60 could extend losses toward $2.3650, while a breakout above $2.78 may push it to $3.2050.
Short liquidations during this period surpassed $150 million, while long liquidations remained under $60 million. Open interest sits at $283.64 million, while daily futures volume reached $160 million, indicating steady participation. Liquidation maps reveal nearly $1 billion in accumulated short liquidations clustered between $3.50 and $4.00. Long/short ratios show a strong bullish bias among traders, with Binance and OKX reporting ratios above 2.2 and as high as 3.34.
Toncoin's recent price action and market dynamics suggest a potential rebound could be on the horizon. With a sharp build-up of short positions and a strong bullish bias among traders, the stage is set for a possible short squeeze. However, a confirmed breakdown below key support levels could extend losses. Traders should closely monitor these levels and market sentiment for potential trading opportunities.
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