The Rise of TON: Cryptocurrency’s Influential Market Surge
The cryptocurrency market has witnessed the dynamic rise of a new star. Toncoin (TON), climbing to its highest levels in nearly a year, now stands as the 10th biggest cryptocurrency with a striking market capitalization of over $9 billion — a peak it has never reached previously.
TON and Telegram’s Giveaways
On November 6, Telegram unveiled a promising feature called “Giveaways”. It allows channel owners the unique opportunity to distribute prizes among their followers in a random yet engaging manner. A day after the launch, Pavel Durov, the CEO of Telegram, utilised $200,000 worth of TON tokens to Pay for Telegram Premium subscriptions for a massive 10,000 user base.
Remarkably, Durov opted for TON as a payment method for this particular scenario, thus marking a significant milestone in the application of TON within the Giveaways feature.
TON Price Rally
Since the launch of Giveaways, TON’s price has witnessed an encouraging 19.5% rally, accompanied by a surge in its trading volumes. This reflects a robust buying interest among the crypto-community. As of November 8, the cryptocurrency’s value ascended to $2.71, showing the highest peak in 11 months.
TON’s Backers and Collaborative Success
Telegram, being the primary backer of Toncoin, has incorporated a self-custodial wallet into its platform. This strategic move significantly amplifies TON’s prospects of greater adoption among Telegram’s vast user base of 700 million active monthly users.
Moreover, Toncoin’s recent partnership with Blockchain.com and its clearance within the Dubai International Financial Centre free trade zone signals a bullish trend for traders, creating a positive ripple effect in the coin’s price surge.
Toncoin Price Prediction
However, from a technical standpoint, the Toncoin price chart suggests an overvaluation. The daily relative strength index of TON has soared above 70, signalling an overbought region. Prior spikes in the overbought zones have resulted in substantial price corrections.
In addition, TON’s multi-month horizontal resistance range of $2.60–$2.70 poses a tough challenge. This range has hampered Toncoin token’s multiple upside attempts since December 2022, suggesting a likely bearish downturn in the coming weeks.
If the market follows this bearish trend, TON’s downside target rests at its Q1/2023 support line, situated near $2.22, which would be a drop of 17.5% from the current price. This limit aligns closely with Toncoin’s multi-month ascending trendline and its 50-day exponential moving average (50-day EMA).
On the contrary, a decisive close above the $2.60–$2.70 resistance band could position TON to target $2.92 as its next potential peak.
All investment and trading moves carry inherent risks. Therefore, before making any decision, prospects should conduct thorough and comprehensive research. The rise of TON underlines the volatile yet exciting nature of the cryptocurrency market, making it imperative to stay informed and strategic.