Toncoin: How profit-taking pressure can cap TON’s rally

Toncoin [TON] faced resistance at the $1.70 region over the past month. The bullish momentum many altcoins saw in the first week of January was inspired by Bitcoin’s [BTC] rally beyond $90k at that time. While Bitcoin has managed to reclaim $94.5k as support, Toncoin has not exhibited much bullish momentum over the past week, having shed 1.29% over the past week. In a recent AMBCrypto report, the importance of the $1.70 area was highlighted. A bullish breakout past this level could see a short-term rally ensue, the report concluded. The on-chain metrics revealed a sizeable uptick in the 90-day MVRV ratio. Further price gains could be capped as holders take profits. Open Interest had also surged, but the mean coin age was moving sideways. This was a reflection of a lack of network-wide accumulation, which translated to a lack of market conviction. What the price charts reveal for TON holders Toncoin [TON] faced resistance at the $1.70 region over the past month. The bullish momentum many altcoins saw in the first week of January was inspired by Bitcoin’s [BTC] rally beyond $90k at that time. While Bitcoin has managed to reclaim $94.5k as support, Toncoin has not exhibited much bullish momentum over the past week, having shed 1.29% over the past week. In a recent AMBCrypto report, the importance of the $1.70 area was highlighted. A bullish breakout past this level could see a short-term rally ensue, the report [concluded](https://ambcrypto.com/toncoin-climbs-above-december-resistance-at-1-7-time-to-buy-it-now/) The [on-chain metrics](https://app.santiment.net/s/qRkALSLK) revealed a sizeable uptick in the 90-day MVRV ratio. Further price gains could be capped as holders take profits. [Open Interest](https://coinalyze.net/toncoin/open-interest/) had also surged, but the mean coin age was moving sideways. This was a reflection of a lack of network-wide accumulation, which translated to a lack of market conviction. What the price charts reveal for TON holders Toncoin [TON] faced resistance at the $1.70 region over the past month. The bullish momentum many altcoins saw in the first week of January was inspired by Bitcoin’s [BTC] rally beyond $90k at that time. While Bitcoin has managed to reclaim $94.5k as support, Toncoin has not exhibited much bullish momentum over the past week, having shed 1.29% over the past week. In a recent AMBCrypto report, the importance of the $1.70 area was highlighted. A bullish breakout past this level could see a short-term rally ensue, the report [concluded](https://ambcrypto.com/toncoin-climbs-above-december-resistance-at-1-7-time-to-buy-it-now/) The [on-chain metrics](https://app.santiment.net/s/qRkALSLK) revealed a sizeable uptick in the 90-day MVRV ratio. Further price gains could be capped as holders take profits. [Open Interest](https://coinalyze.net/toncoin/open-interest/) had also surged, but the mean coin age was moving sideways. This was a reflection of a lack of network-wide accumulation, which translated to a lack of market conviction. What the price charts reveal for TON holders Toncoin [TON] faced resistance at the $1.70 region over the past month. The bullish momentum many altcoins saw in the first week of January was inspired by Bitcoin’s [BTC] rally beyond $90k at that time. While Bitcoin has managed to reclaim $94.5k as support, Toncoin has not exhibited much bullish momentum over the past week, having shed 1.29% over the past week. In a recent AMBCrypto report, the importance of the $1.70 area was highlighted. A bullish breakout past this level could see a short-term rally ensue, the report [concluded](https://ambcrypto.com/toncoin-climbs-above-december-resistance-at-1-7-time-to-buy-it-now/) The [on-chain metrics](https://app.santiment.net/s/qRkALSLK) revealed a sizeable uptick in the 90-day MVRV ratio. Further price gains could be capped as holders take profits. [Open Interest](https://coinalyze.net/toncoin/open-interest/) had also surged, but the mean coin age was moving sideways. This was a reflection of a lack of network-wide accumulation, which translated to a lack of market conviction. What the price charts reveal for TON holders Toncoin [TON] faced resistance at the $1.70 region over the past month. The bullish momentum many altcoins saw in the first week of January was inspired by Bitcoin’s [BTC] rally beyond $90k at that time. While Bitcoin has managed to reclaim $94.5k as support, Toncoin has not exhibited much bullish momentum over the past week, having shed 1.29% over the past week. In a recent AMBCrypto report, the importance of the $1.70 area was highlighted. A bullish breakout past this level could see a short-term rally ensue, the report [concluded](https://ambcrypto.com/toncoin-climbs-above-december-resistance-at-1-7-time-to-buy-it-now/) The [on-chain metrics](https://app.santiment.net/s/qRkALSLK) revealed a sizeable uptick in the 90-day MVRV ratio. Further price gains could be capped as holders take profits. [Open Interest](https://coinalyze.net/toncoin/open-interest/) had also surged, but the mean coin age was moving sideways. This was a reflection of a lack of network-wide accumulation, which translated to a lack of market conviction. Traders’ call to action: Go long and don’t forget to take profits The short-term bullish momentum was something traders could capitalize on. The OBV and the daily volume bars indicated a flurry of buying from the final week of December. The imbalance and local supply zone at $1.70 has been flipped to support. Swing traders can use this flip to buy TON. They need to be cautious and remember to take profits at $2.16 and $2.37, with a drop below $1.56 being invalidation. Final Thoughts - Toncoin’s on-chain metrics showed network-wide accumulation was not underway. - A rally to $2.0 and $2.37 appeared possible in the coming weeks, and swing traders must be ready to take profits during the move. Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion. Next: Cardano under pressure as whales buy 210 mln: Breakout or fake out, what’s ahead?