The price of Toncoin (TON) has surged to its highest levels in almost a year, driven by a series of positive developments in the cryptocurrency’s market. These include the recent introduction of “Giveaways” on Telegram and the purchase of $200,000 worth of TON tokens by Pavel Durov, the CEO of Telegram, to pay for Telegram Premium subscriptions for 10,000 users.
As a result of these developments, TON has emerged as the 10th-biggest cryptocurrency, with a market capitalization of over $9 billion, marking its highest point to date. The surge in TON’s price has been significant, with the cryptocurrency reaching $2.71, its highest level in 11 months, representing a 19.5% increase since the launch of the Giveaways feature.
This surge in TON’s price has also been accompanied by a rise in trading volumes, indicating strong buying interest in the cryptocurrency. Additionally, Telegram’s integration of a self-custodial wallet into its platform has further boosted TON’s adoption potential among the 700 million monthly active users of the messaging app.
Furthermore, Toncoin’s recent partnership with Blockchain.com and its approval in the Dubai International Financial Centre free trade zone have served as bullish indicators for traders. These developments have contributed to the upside price reactions observed in TON’s price chart.
Related Post
Despite the recent surge in price, the technical analysis of TON’s price chart suggests that the cryptocurrency may be overvalued. The daily relative strength index (RSI) has entered the overbought region, a condition that has historically preceded sharp price corrections in TON’s price.
Moreover, TON faces a multimonth horizontal resistance range of $2.60–$2.70, which has proven to be a formidable barrier for the cryptocurrency’s upside attempts since December 2022. This resistance range raises the potential for a bearish reversal in the coming days or weeks, with the possibility of the price correcting downwards towards its Q1/2023 support line near $2.22.
If a bearish reversal occurs, this support line, which is also near TON’s multimonth ascending trendline and its 50-day exponential moving average (50-day EMA), could serve as a significant level to watch. Conversely, a decisive close above the $2.60–$2.70 resistance range would position TON to target $2.92 as its next upside milestone.
It is important to note that this article does not offer investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.
In summary, the recent surge in Toncoin’s price has been driven by a series of positive developments, including the launch of “Giveaways” on Telegram and significant purchases of TON tokens. However, the technical analysis of TON’s price chart suggests that the cryptocurrency may be overvalued and could face a bearish reversal in the near term. Traders and investors should closely monitor TON’s price movements and conduct thorough research before making any investment decisions.
