The post Toncoin on the Verge of Short Squeeze: $7 Price Target Possible appeared on BitcoinEthereumNews.com.

Toncoin’s (TON) price has managed to hold above the $5 mark following a broader market bounce. This resilience usually signals confidence that the cryptocurrency could sustain its upward momentum. However, amid growing uncertainty, BeInCrypto notes that many traders are taking short positions. On-chain data, though, indicates that they may soon be forced to exit their trades. Here is why. Toncoin Traders Shift from Bullish to Bearish On Monday, September 9, Toncoin’s Long/Short ratio jumped to 1.15. This initial rise indicates that most traders in the derivatives market turned to open long positions while expecting a price increase.  However, as of this writing, the Long/Short ratio is down to 0.36, showing that about 73% of traders have decided to short the token despite the uptrend. On the other hand, 26% still believe that TON’s price would increase as they chose long positions. In simple terms, this ratio gives an overview of investor sentiment. When the value is above 1, most positions are long, and the average trader expects a bullish outcome. Therefore, the recent plunge indicates that many Toncoin traders do not expect the price to continue swinging high.  Read more: 6 Best Toncoin (TON) Wallets in 2024 Toncoin Long/Short Ratio. Source: Coinglass Despite the bearish trends, findings from IntoTheBlock reveal that many addresses that purchased Toncoin (TON) in the last 30 days are still holding onto the cryptocurrency. Although these holders are considered short-term investors, their decision to refrain from selling during periods of high volatility is often viewed as a bullish signal. If these passive investors continue to HODL, the token could avoid a notable price decline. Toncoin Addresses By Time Held. Source: IntoTheBlock Instead, Toncoin’s price might rise, potentially triggering a short squeeze. In this context, a short squeeze occurs when investors who bet on a price decrease are forced to close their…

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Filed under: News - @ September 10, 2024 2:22 pm