During Wednesday’s U.S. trading session, the crypto market showed a bearish outlook as Bitcoin headed close to a $60k breakdown. Along with most major cryptocurrencies, Toncoin price also faced downward pressure, recording a 1.5% intraday loss and nearing a $5 support break. Will the bearish momentum stabilize for a potential reversal as the TON blockchain witnesses a renewed growth in stablecoin supply?
Toncoin Price Targets $6 Recovery as Stablecoin Supply on TON Blockchain Jumps 13x
After the arrest and legal drama around Pavel Durov, the founder of Telegram, the TON network is showing signs of resilience.
According to crypto enthusiast Nick Garcia, sourced from Messari, the stablecoin supply on TON Blockchain has surged by 25% since the arrest, with an overall increase of 13x since April. The increase accentuates a renewed interest and growth in the TON ecosystem despite the turbulence surrounding Durov’s arrest.
The rising, stablecoin supply often boosts liquidity and network usage, potentially boosting demand for Toncoin as a utility token for transaction fees and staking, thereby supporting a price increase.
Following the turbulence surrounding Pavel, @ton_blockchain is showing signs of life.
Stablecoin supply is up 25% since the arrest, bringing the total increase to 13X since April.
If you squint, the situation has parallels to FTX. pic.twitter.com/NCtS0zqCgY
— Nick Garcia (@NickDGarcia) October 8, 2024
According to DefiLlama, TON’s total value locked (TVL) has experienced a notable increase, rising from $317.2 million to $402 million over the past month, reflecting a 26% growth. The increasing TVL hints that more inverters are locking their assets into the TON network and participating in decentralized finance (DeFi) protocols.
Moreover, Nick Garcia offers a cautionary outlook for investors and users by comparing this scenario with FTX, which faced a major collapse.
TON Price To Plunge 8% Amid Downsloping Resistance
Amid the ongoing war between Iran-Israel, the Toncoin price showcased a sharp reversal from $6.06 to $5.06, registering 17%. This bearish turnaround in the daily chart marks another reversal from the resistance downsloping trendline, signaling the sellers continue to defend high ground.
The dynamic resistance that has been intact since July 2024 could renew the selling pressure and drive the asset for prolonged correction. If selling pressure persists, the TON price could potentially drop to $4.5, with further downside risks leading to a decline toward $3.3.
On the contrary, a bullish breakout from the overhead trendline will signal the recovery trend gaining momentum and drive a rally past $6 swing high to target $7.2 resistance.
Frequently Asked Questions (FAQs)
Toncoin is showing signs of resilience as the stablecoin supply on the TON Blockchain has surged by 13x since April, boosting liquidity and network activity. However, with recent bearish pressure and the ongoing legal drama surrounding Pavel Durov, investors should watch for a bullish breakout from the downsloping trendline to confirm a sustained recovery
If the bearish trend continues, Toncoin could drop by 8.8%, reaching the $4.5 support level
Toncoin is undergoing a correction driven by a downsloping trendline that has been in place since July 2024
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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