Toncoin’s (TON) price has remained relatively stable recently, but key on-chain metrics suggest a potential short squeeze, which could disrupt this trend soon.
A short squeeze involves a sharp rise in an asset’s price, forcing traders with short positions to buy it back at higher prices. CryptoQuant's Joao Wedson noted that Toncoin’s 30-day open interest delta and negative funding rate could lead to this situation.
The 30-day open interest delta has turned positive, indicating increased market activity. However, the negative funding rate shows that traders are paying to keep short positions open, reflecting a bearish outlook. This mixed scenario indicates a potential short squeeze and increased volatility.
Toncoin is currently trading at $5.88 with a strong uptrend indicated by the Aroon Up Line. If the rally continues, TON could gain 51% and break past its resistance at $8.02.
If market sentiment turns negative, Toncoin’s price could drop to $4.44, negating the current bullish outlook. This situation creates uncertainties about TON's future price movements.
