TON Price: Bullish Signals Emerge?

Despite recent market weakness, Toncoin (TON) shows resilience, remaining near its all-time high unlike many other altcoins. Along with Bitcoin (BTC), Tron (TRX), and Solana (SOL), TON displays a robust market structure. This article explores several key indicators hinting at a potential price surge.

Historical Buy Signal for TON?

The 180-day Sharpe Ratio has dropped to historically low levels, suggesting reduced risk-adjusted returns. Historically, similar drops preceded TON price bottoms and accumulation phases. This pattern, combined with a low Normalized Risk Metric (NRM), indicates TON might be entering another accumulation period.

Key observations:

• Low Sharpe Ratio: historically associated with TON price bottoms.
• Low NRM: similar to past accumulation zones.
• Price Drawdown Heatmap: shows TON's stronger structural resilience compared to other altcoins.

If history repeats, this could be an ideal long-term entry point for investors seeking favorable risk-reward profiles.

Source: CryptoQuant

Source: CryptoQuant

Source: CryptoQuant

Chart Pattern Hints at Breakout

TON's one-hour Binance chart shows an inverse head and shoulders pattern – a classic bullish reversal signal. A breakout above the neckline could trigger sustained upward momentum. At the time of writing, the Relative Strength Index (RSI) sits at 63.59, suggesting increasing buying pressure but remaining below overbought levels.

Source: Coinglass

Rising Long Positions: Potential Short Squeeze

Binance's Long/Short Ratio reveals growing long positions, indicating rising investor optimism. While short positions reflect ongoing skepticism, the shift toward a higher long ratio might prepare the ground for a breakout. Historically, such shifts have often preceded strong price increases.

Source: Coinglass

A sustained rise in long positions, coupled with trapped shorts, could result in a liquidation cascade fueling further price gains. This reinforces the bullish outlook. The combined effect of low Sharpe Ratio, inverse head and shoulders, and increasing long positions significantly strengthens the case for an upward trend shift for TON.

Codeum Note: Codeum offers comprehensive blockchain security services, including smart contract audits and tokenomics consulting to help projects like TON mitigate risks and optimize their security posture. We partner with launchpads and crypto agencies to ensure the highest security standards for blockchain projects.