Toncoin price rose 9% during US trading hours on Friday, defying the crypto market downturn. Bitcoin’s failure to follow Thursday’s rally has raised fears that the market could see another drop before recovering. Will TON buyers follow this plan or continue the advance?
Toncoin price hints at a possible reversal
The cryptocurrency market showed a remarkable recovery this week in response to the July market correction. While the Bitcoin price rose from $49,600 to $62,700 – an increase of 26%, the altcoin market gained momentum.
This scenario is reflected in the rise in Toncoin price from $4.73 to $6.7, representing a growth of 42%, while the market capitalization rises to $16.93 billion.
Furthermore, a significant increase in total value locked (TVL) is supporting the TON price rise. According to data from DefiLlama, TVL recovered from $485 million to $625 million this week, representing a 28% increase. Such an increase typically indicates growing investor confidence and increased capital inflow into the ecosystem, which can bolster the price of the underlying asset.
This renewed growth in TVL, which played a key role in Toncoin’s recovery in early 2024, suggests that current price momentum may continue, potentially leading to further gains.
Therefore, if the altcoin breaks the upper trend line at the close of the daily candle, buyers could initiate a 24% surge, challenging the all-time high resistance at $8.29.
However, according to the on-chain metric In/Out of the Money Around Price (IOMAP), about 3.56 million addresses hold about 38.7 million TON tokens with an average purchase price of $6.58. This metric helps in determining critical support and resistance levels as large clusters of “in the money” addresses can provide strong support. In contrast, “out of the money” clusters can act as resistance during price movements.
If market sentiment remains cautious about a potential downturn, the above addresses could dump their tokens at breakeven, which could increase supply pressure in the future.
The slope of the 50-day exponential moving average (EMA), which fluctuates around the upper trend line, represents additional resistance to buyers.
A possible reversal could therefore push the Toncoin price down by 28% and retest the multi-month support level of $4.7.
Frequently Asked Questions (FAQs)
The 42% increase in Toncoin price was due to a broader market recovery and a 28% increase in total value locked (TVL), indicating growing investor confidence.
Toncoin is facing a key resistance at $6.58, where about 3.56 million addresses hold around 38.7 million TON tokens
A relief rally is a temporary recovery in the price of an asset, often after a prolonged period of decline or significant losses.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Equipped with a strong understanding of technical analysis, he keeps an eye on the daily price movements of major assets and indices. Attracted by his fascination with financial instruments, Sahil has enthusiastically turned to the emerging space of cryptocurrencies, where he continues to explore opportunities fueled by his passion for trading.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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