Toncoin, the native crypto on TON demonstrated a continuation of the bullish demand this week after a bullish November.
Its latest price action pushed above November highs but the bulls might be stopped on their tracks.
The latest Toncoin rally was characterized by an extension of strong demand that prevailed in the last 4 weeks.
This was evident by the recent surge in positive funding rates, revealing that derivatives traders were still bullish this week.
It’s worth noting that despite the positive funding rates, Toncoin open interest has been relatively weak. OI in the cryptourrency amounted to $267.5 million.
While this was a healthy sum and a noteworthy gain in the last 4 weeks, it did not necessarily signal robust demand. Open interest was notably lower than it was in August.
Toncoin Bulls Encounter Resistance at Historically Significant Level
Although Toncoin has demonstrated continuation of its November momentum, price may be due for a retracement.
This is because the latest demand wave saw it rally as high as $7.19, after which sell pressure made a comeback.
The $7 price level previously acted as a resistance and a similar outcome appeared to play out with its latest push.
Remember the observation that the recent demand was not as strong as it was in August? Well, this may underscore the fate of Toncoin in the next few days.
Chances are that the cryptocurrency will likely struggle to overcome the $7 resistance level in the absence of robust demand.
The probability that demand will cool off was also significantly high accounting for the fact that it TON was overbought after its latest push.
The above data suggests that Toncoin could be on the verge of a slight retracement. However, robust and sustained demand could soon push past the same resistance level.
TON Addresses Achieve Noteworthy Milestone
The total number of addresses on TON soared to 67,680 addresses as of 4 November. This was the highest number of addresses that the network recorded in its history.
Address stats may also offer some insights into holder behavior. For example, addresses with zero balance grew considerably in the last 3 weeks.
For instance, total zero balance amounted to 34,810 addresses as of 21 November. That figure has since grown to 35,740 as of 3 November.
A sign that more addresses offloaded their Toncoin holdings as price soared higher.
TON on-chain data failed to demonstrate strong network activity that may offer more bullish confidence.
For example, the network’s stablecoin marketcap dipped slightly from its highest point in November.
TVL also struggled to achieve considerable upside, indicating relatively weak activity. It declined from over $777.1 million in July to $358.56 million as of 3 December.
Despite this, we did observe positive volume growth since the end of November. A reflection of the extended bullish momentum.
On-chain data did not offer much to support a strong bullish case for Toncoin. However, more upside will likely be the order of the day if the overall market conditions remain bullish.
However, pullbacks are expected to take place along the way and the latest one could already be in the works.
