Toncoin (TON) experienced a slight 0.2% dip during Wednesday’s U.S. trading session, settling at $5.2. This minor pullback creates a neutral daily candle, continuing the consolidation pattern that has persisted since early October. However, with increasing USDT activity on the TON network and bullish technical signals, Toncoin appears poised for a potential breakout to $8.

USDT Gaining Traction on TON Network

CryptoQuant analyst Maartunn reports that USDT is seeing significant adoption on The Open Network (TON) blockchain. Operating as a Jetton – TON’s equivalent to Ethereum’s ERC-20 tokens – USDT has quickly become the most utilized token on the platform, with over 4.5 million transactions in the past 30 days.

Just a month ago, USDT transactions on TON surpassed $300 million in volume. This surge highlights the growing appeal of TON for stablecoin activity. The network’s ability to efficiently handle these transactions demonstrates its robustness, which should drive demand for TON’s native cryptocurrency.

At press time, Toncoin was trading at $5.24 with a market capitalization of $13.23 billion.

Whale Accumulation and Declining Exchange Supply Signal Bullish Momentum

Santiment data shows that Toncoin supply held by top addresses has jumped from 23.6% to 28.07%. This increased accumulation by major holders reflects confidence in TON’s future prospects. Historically, such accumulation trends from whales have preceded significant price reversals and sustained recoveries.

Additionally, TON supply on exchanges has dropped sharply from 2.54 million to 1.68 million since September. Declining exchange balances often indicate investors moving assets to cold storage or private wallets, suggesting a shift towards long-term holding rather than short-term trading.

This combination of active whale accumulation and reduced selling pressure on exchanges creates a bullish backdrop for sustained price appreciation.

Technical Analysis Points to Potential Breakout

While Toncoin has consolidated above the $5 level for the past two weeks, analysis of lower timeframes reveals the formation of an inverted head and shoulders pattern. This bullish reversal pattern suggests buyers are actively defending lower price levels.

TON is currently just 2.22% away from challenging the pattern’s neckline resistance at $5.3. A successful breakout could accelerate buying momentum, potentially driving the price towards $6 and ultimately $8.2.

However, if Toncoin fails to breach the overhead trendline in place since July 2023, sellers may push for another corrective move lower.

Frequently Asked Questions (FAQs)

1. What factors could drive Toncoin’s price to $8?
The growing adoption of USDT on the TON blockchain, combined with bullish technical indicators like the inverted head and shoulders pattern, could propel Toncoin’s price to break key resistance levels, potentially reaching $8

2. What does the decreasing exchange supply of Toncoin indicate?
Toncoin’s supply on exchanges has decreased from 2.54 million to 1.68 million since September, signaling a shift toward long-term holding rather than short-term trading.

3. What bullish chart pattern is Toncoin currently forming?
Toncoin is forming an inverted head and shoulders pattern, a bullish reversal indicator

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.