Toncoin traders turn bearish as short squeeze possibility grows

Toncoin (CRYPTO:TON) has managed to stay above the $5 mark after a broader market bounce, signaling a possible continuation of its upward trend. 

However, recent data shows that a significant number of traders are turning bearish, which might lead to a short squeeze in the near future. 

As of September 9, Toncoin's Long/Short ratio stood at 1.15, indicating that most traders were taking long positions in anticipation of a price increase. 

But this sentiment has quickly shifted, and the ratio has now dropped to 0.36. 

This change suggests that around 73% of traders are now shorting Toncoin, expecting its price to decline. 

Conversely, only 26% of traders remain optimistic, maintaining their long positions. 

The Long/Short ratio is a useful indicator of market sentiment. 

A value above 1 generally signals bullish expectations, while a value below 1 suggests bearish sentiment. 

The sharp drop in the ratio reflects a lack of confidence among traders that Toncoin’s price will continue its upward movement. 

Despite the bearish sentiment, data from IntoTheBlock reveals that many addresses holding Toncoin bought within the last 30 days are not selling. 

These short-term investors seem to be holding steady, which is often seen as a bullish sign, particularly during volatile market periods. 

If these holders continue to HODL, it could prevent a significant drop in Toncoin's price and potentially trigger a short squeeze. 

Toncoin is now positioned in a crucial demand zone that previously sparked a rally toward $7 in mid-August. 

The Chaikin Money Flow (CMF) indicator, which tracks money flows to assess an asset's trend, has turned positive, suggesting that Toncoin might see further gains. 

If this momentum continues, Toncoin could rise by another 9% to reach $5.83. 

In a highly bullish scenario, the price could climb toward $6.90. 

However, if the positive momentum does not sustain, Toncoin might fall back below $5. 

Traders should keep a close eye on these developments, as they could indicate a significant move in either direction. 

At the time of writing, the Toncoin (TON) price was $5.48.