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Toncoin (TON) has been showing signs of recovery and significant growth, with its price testing the ascending trendline support last Monday and rising 10% to trade at around $7.65 on Thursday.

Increased activity and interest in the TON ecosystem suggests a potential for the cryptocurrency to surpass its previous record high.

According to analyst Manish Chhetri, Toncoin price has set three consecutive higher lows and four nearly equal highs since April 11. These price movements have formed an ascending triangle pattern on the daily chart.

“This technical pattern usually indicates a bullish bias,” Chhetri explained.

However, on June 14, according to the analyst, TON broke out of the ascending triangle pattern, reaching a new high of $8.29 on June 15, before suffering a sharp decline of approximately 15%.

He points out that after the drop, which coincided with the 61.8% Fibonacci retracement level at $6,886, TON tested the ascending trendline support and bounced back.”

For Chhetri, this recovery indicates a liquidation of leveraged long positions and the opening of new long positions.

Toncoin may rise further

As Chhetri points out, if Toncoin breaks above the $8.29 level, it could rally by 19% to a new all-time high of $9.82. He points out that this target corresponds to the 141.40% Fibonacci extension level drawn from the low of $4.60 on May 1 to the high of $8.29 on June 15.

Technical indicators also support a bullish outlook. The Relative Strength Index (RSI) and Awesome Oscillator (AO), for example, are firmly above their averages of 50 and zero, respectively.

Data from Coinglass shows that on June 18, long positions totaling $1.34 million were liquidated, significantly higher than short positions of $155,890.

Furthermore, the analyst points out that TON’s Open Interest increased from $255.28 million on June 20 to $305.16 million on June 27. This is an increase of 19.5%.

“This increase, coupled with price appreciation, suggests an influx of new capital and elevated buying activity in the market,” Chhetri explained.

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