Toncoin (TON) has recently surpassed Chainlink (LINK) in market capitalization. The rise of TON is driven by its expanding use cases, such as gaming, DeFi, supply chain, and payments. The article analyzes the factors behind TON’s growth and its technical outlook.
The crypto market has witnessed a remarkable phenomenon, as Toncoin (TON), a blockchain platform that emerged from a messaging app, has flipped Chainlink (LINK), one of the most popular decentralized oracle networks, in terms of market capitalization.
Factors Affecting the Surge
Toncoin, formerly known as Gram, is the native cryptocurrency of The Open Network (TON), a decentralized layer-1 blockchain that was initially developed by Telegram, the encrypted messaging platform, in 2018.
However, the project was abandoned by Telegram due to regulatory issues and was taken over by the TON Foundation, a non-commercial group of supporters and enthusiasts.
TON aims to provide a fast, transparent, and secure platform for various applications and services, such as messaging, gaming, DeFi, supply chain, and payments.
TON claims to have a high scalability and performance, as it can process millions of transactions per second (TPS) using a sharding mechanism and a proof-of-stake (PoS) consensus model.
One of the key factors behind TON’s growth is the anticipation of its upcoming launch of Fair Mint, a new feature that allows users to create and distribute their own tokens on the Bitcoin blockchain using TON.
Fair Mint was announced on November 7 and has sparked considerable interest within the crypto community, leading to a surge in user activity on the platform.
Another factor contributing to TON’s popularity was its previous airdrop, which had a token value of approximately $2,600. The airdrop attracted many users to the platform and increased the number of transactions and interactions on TON.
The promise of new opportunities and rewards has resonated with the crypto audience, leading to a high level of engagement.
The Technical Outlook for TON
From a technical perspective, TON’s uptrend was supported by the key level of $2.26, which acted as a strong support. As a result, the TON price bounced back to $2.38, where it faced some resistance.
However, the pullback to $2.34 may only be a temporary correction before TON resumes its upward movement.
This is confirmed by the moving average convergence divergence (MACD), a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
At press time, the MACD was positive, indicating a bullish momentum. The MACD line (blue) was also above the signal line (orange), which is a buy signal.
If the buying pressure continues, TON may rise to $2.43, the rejection point that pushed the cryptocurrency down on November 16. A break above this level could open the door for further gains, possibly reaching $2.50 or higher.
On the other hand, if the selling pressure intensifies, TON may fall below $2.26, which could trigger a bearish reversal, possibly testing $2.10 or lower.
Toncoin’s price has been on a steady uptrend since September 2021, when it was trading at around $0.5. Since then, it has increased by more than 400%, reaching an all-time high of $2.62 on November 12, 2021.
At the time of writing, Toncoin is trading at $2.35, with a market cap of $8.06 billion, according to CoinMarketCap.
The recent price surge was supported by a strong demand for TON tokens, as evidenced by the increasing trading volume and network activity.
According to CoinGecko, the 24-hour trading volume of TON was $55.9 million, while the number of active addresses on the network was 1.3 million, according to TON Live.
On the other hand, if the selling pressure increases, TON could fall below the support level of $2.26, which would invalidate the bullish scenario.
In that case, the next support level for TON could be $2.10, which is the 50% Fibonacci retracement level of the same decline. Below this level, the price could drop to $1.92, which is the 38.2% Fibonacci retracement level and a previous resistance-turned-support zone.
Toncoin has a high social score of 72.8 out of 100, indicating a positive sentiment among the crypto community.
Moreover, the project has partnered with several prominent platforms and organizations, such as Huobi, Bybit, Azbit, and the World Economic Forum, to increase its exposure and reach.
Therefore, the Toncoin project deserves attention, as it could become one of the leading blockchain platforms in the near future.
Disclaimer: The analysis provided is based on current market conditions and aims to provide objective insights into possible price movements. It is important to conduct further research and analysis before making any investment decisions. Coinscreed and its affiliates are not liable for any damage or loss.