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Data shows the Toncoin (TON) Open Interest has registered a spike in the past day. Here’s what could happen next, according to historical trends.
Toncoin Open Interest Has Hit Its Highest Since February
In a new post on X, the on-chain analytics firm Glassnode has talked about the latest trend in the Open Interest for Toncoin. The “Open Interest” here refers to a metric that keeps track of the total amount of perpetual futures positions related to TON (in USD) that are currently open on all derivatives platforms.
When the value of this metric rises, it means the investors are opening up more positions related to the asset on the market. Generally, the total leverage in the sector goes up when new positions appear, so this kind of trend can lead to higher volatility for the cryptocurrency’s price.
On the other hand, the indicator going down suggests that investors are closing their own positions voluntarily or being forcibly liquidated by their exchange. Either way, the asset can behave in a more stable manner following such a trend due to the drop in leverage.
Now, here is the chart shared by the analytics firm that shows the trend in the Toncoin Open Interest over the last few months:
As displayed in the above graph, the Toncoin Open Interest has just seen a very sharp spike, a sign that traders have opened up a large number of futures positions. More specifically, the metric’s value has gone up from $143 million to $190 million over the last 24 hours.
From the chart, it’s visible that this quick 33% jump initially came as the coin’s price witnessed a rapid increase, but interestingly, it maintained its upward trajectory even as the asset saw a pullback.
“Past spikes like this have often preceded corrections – worth watching closely,” notes Glassnode. The last time the Toncoin Open Interest formed this pattern was at the end of March/start of April. What followed back then was a price drawdown of about 32%.
TON isn’t the only digital asset that has seen an uptick in speculation recently. As the analytics firm has pointed out in its latest weekly report, Bitcoin has also been observing a major rise in its Open Interest.
As is visible in the chart, the Bitcoin Open Interest fell to a low of $36.8 billion in April as the cryptocurrency’s price itself went down. Since then, however, the indicator has shot up by 51% alongside the bull rally, reaching the $55.6 billion mark. The report explains that this suggests “a build up of leverage is underway.”
TON Price
At the time of writing, Toncoin is trading around $3.34, up more than 11% in the last 24 hours.
Featured image from iStock.com, Glassnode.com, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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