TON Open Interest Turns Positive, Signaling Potential Reversal

• TON’s price surged from $2.5 to $7.5 in early 2024, driven by bullish sentiment and rising open interest delta.
• A mid-year correction led to capital outflow and a price drop to $4, reflected in negative open interest.
• By September 2024, both price and open interest delta showed signs of recovery.

The latest TON market trend shows a shift in investor behavior and a possible influence on the asset’s value. According to Cryptoquant, TON’s 30-day open interest delta is now positive while the funding rate remains negative.

This shift points to important dynamics that could influence TON’s price in the coming weeks. The Ton Open Interest Delta chart from December 2023 to September 2024 shows notable patterns in market activity.

From December 2023 to March 2024, TON’s price saw a gradual decline, remaining below $2.5. During this time, open interest remained relatively low, with only minimal fluctuations, signaling limited futures activity.

Price Surge and Increased Open Interest

In late March 2024, TON experienced a rapid price surge, rising from below $2.5 to nearly $6.5 by April. This period featured a strong increase in the open interest delta, suggesting a wave of speculative interest. As the price continued to climb through mid-May, reaching over $7.5, volatility appeared, with sharp fluctuations in both directions. The open interest delta peaked during this time. However, negative red bars started to appear by June, indicating that capital exited futures positions as the price dropped.

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From July to August, TON entered a correction phase, with the price steadily declining and bottoming near $4 in late August. Throughout this period, the open interest delta remained negative, reflecting a continued outflow of capital.

By September, though, the price showed signs of stabilization, rising above $4.5. Open interest also turned positive again, hinting at renewed speculative interest in the market.

Open Interest Delta: A Key Indicator

The relationship between TON’s price and open interest delta highlights the market’s speculative nature. Strong bullish sentiment drove the early 2024 price surge, which brought significant inflows into futures positions.

However, as the market corrected, capital rapidly left. In recent months, the recovery in both price and open interest suggests a potential turnaround. Still, investors will need to keep a close watch on these metrics to gauge future market movements.