Despite the overall downturn in the crypto market, Toncoin is trying to maintain its strong chart after months of growth. However, it recently failed to reach previous highs, reflecting the broader market weakness.

After outperforming Bitcoin for three months, Toncoin's trend is slowing and may be turning into a consolidation phase.

TONUSD - 1 Day Time Frame

Toncoin has revisited an area with the highest volume since April, indicating strong positions and demand at this level. Liquidity levels of this magnitude are often revisited.

On July 4th, Toncoin experienced long liquidations exceeding $5 million. Today's short liquidations suggest a short squeeze, which, combined with Toncoin's trending Open Interest (OI), could push the price higher.

Toncoin Open Interest

Toncoin's Open Interest has been making new highs while the price has not. This discrepancy is a concern because if the price fails to make a new high, these built-up positions may start to sell off. TON is widely used within the Telegram community, driving significant demand.

The invalidation level for Toncoin would be if it loses the marked Value Area Down, which also marks a previous Swing Low. If the price does not break out, it is likely to range between the marked interim low and the resistance.

After widespread market shakedowns, it is advisable to wait for a bottom to form before entering the market. Despite the market's weakness, TON could continue its trend, as it did during previous market consolidations.

It is advisable to watch for a strong breakout that could attract more investors and drive the price higher. Such a breakout would provide a solid entry point.