The Toncoin price has shown a significant recovery after hitting a multi-month low on Monday, as investors adjusted their strategies related to the Japanese yen carry trade.

The Toncoin token surged to a high of $6.38, marking an increase of over 35% from its lowest point earlier this week. This rebound occurred despite some weak on-chain metrics. Data from TonStat reveals that the number of Toncoins burned per day has dropped to 5,766 from a year-to-date high of 28,000.

Although the number of on-chain activated wallets has risen to nearly 12 million, the number of daily active wallets has decreased to 459,230 from July’s peak of 700,000. These figures suggest that Toncoin has not significantly benefited from the popularity of tap-to-earn platforms like Hamster Kombat and Notcoin.

The recovery of Toncoin aligns with improved sentiment among both crypto and stock traders. The Dow Jones index has regained most of its losses from Monday, climbing by 300 points on August 8. Other global indices have also seen recovery. In the cryptocurrency market, Bitcoin and other altcoins have shown impressive gains over the past few days.

Toncoin’s rebound is noteworthy, especially given the high-volume trading environment. Its 24-hour volume has exceeded $1.3 billion, surpassing its historical average. Additionally, open interest in the futures market has risen to $236 million, the highest level since August 2.

Toncoin’s recent price action has been characterized by a rising wedge pattern, typically a bearish sign. However, on the weekly chart, the token is forming a hammer candlestick pattern, which often indicates a bullish reversal.

For Toncoin to maintain its upward momentum, it needs to close above Monday’s low of $4.80. The lower shadow of the candlestick should be at least twice the size of the body, while the upper shadow should remain small. If the body size becomes tiny, the pattern will evolve into a dragonfly doji, another bullish indicator.

If these patterns hold in the current high-volume environment, it could signal further upside potential, with bulls targeting resistance at $7.

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