Toncoin (TON) has maintained its position above the $5 mark after a broader market bounce, signaling potential confidence in the cryptocurrency’s ability to continue its upward momentum. However, despite this resilience, BeInCrypto reports that many traders are increasingly taking short positions, suggesting growing uncertainty. On-chain data indicates that these bearish traders may soon be forced to exit their trades. Here’s why.**Toncoin Traders Turn Bearish**On Monday, September 9, Toncoin’s Long/Short ratio initially rose to 1.15, indicating that most derivatives traders were opening long positions, expecting a price increase. However, the ratio has since dropped to 0.36, revealing that about 73% of traders are now shorting TON, even as prices trend upward. Meanwhile, 26% of traders still hold long positions, betting on a price increase.The Long/Short ratio reflects investor sentiment: a value above 1 suggests bullish expectations, while a value below 1 indicates bearish sentiment. The recent drop in the ratio highlights a shift in trader confidence, suggesting that many do not expect Toncoin’s price to continue rising. Read more: 6 Best Toncoin (TON) Wallets in 2024.
Despite the bearish trends, data from IntoTheBlock shows that many addresses that acquired Toncoin (TON) in the past 30 days are still holding onto their tokens. While these holders are classified as short-term investors, their reluctance to sell during periods of high volatility is often seen as a bullish indicator. If these passive investors continue to hold, it could help Toncoin maintain its current price levels and avoid a significant downturn.
**Toncoin Addresses by Time Held. Source: IntoTheBlock**Toncoin’s price could potentially rise further, setting the stage for a short squeeze. A short squeeze occurs when traders betting on a price decline are forced to close their losing positions as the price rises, pushing the price even higher.**TON Price Prediction: The Token Could Approach $7**Currently, Toncoin (TON) is trading at $5.26, up 13% from its swing low on September 5. The token is now in a critical demand zone that previously sparked a rally toward $7 in mid-August.On the daily chart, the strong support level at $4.88 has been instrumental in the recent price recovery. Moreover, the Chaikin Money Flow (CMF) indicator signals further potential gains. The CMF, which measures the flow of money and indicates trends, has moved out of negative territory and into positive, suggesting TON’s price could continue climbing. A potential 9% increase could bring the price to $5.83.Read more: Which Are the Best Altcoins To Invest in September 2024?
Toncoin Daily Analysis. Source: TradingViewIn a highly bullish scenario, the token’s value might rally toward $6.90, a notable point of interest. However, if the bullish momentum around TON subsides, the price might fall below $5 again.