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Toncoin’s Total Value Locked Sets New Record – Will the TON Price Do the Same?

Last Updated May 30, 2024 9:23 AM
Valdrin Tahiri
Last Updated May 30, 2024 9:23 AM

Key Takeaways

  • Toncoin’s Total Value Locked (TVL) has climbed this year and reached a new all-time high on May 29.
  • The TON price traded only 16% below its all-time high after barely failing to reach it on May 13.
  • Will Toncoin’s price follow the lead set by the TVL and reach a new all-time high?

The Toncoin price was one of the major risers in the first quarter of 2024, increasing over 200% and reaching a new all-time high in March. However, in a trend visible throughout the cryptocurrency market, the price has corrected since.

Interest in Toncoin is clearly on the rise, as shown by the increase in its Total Value Locked. Despite a recent unsuccessful attempt to reach a new price all-time high, the surge in TVL raises the question: will the TON price catch up?

Toncoin’s TVL Reaches All-Time High

Toncoin’s TVL has risen steadily in 2024, from $72 million on January 1 to an all-time high of $640 million on May 29, a nine-fold increase. The TVL is primarily driven by Tonstakers , the liquid staking solution in Toncoin with $232 million in TVL.

The liquid staking sector has enjoyed considerable interest this year. In the Ethereum blockchain, the project with the largest TVL is LDO, which is a liquid staking solution in itself.

There are several other liquid staking platforms that are undervalued based on their TVL/Market capitalization disparity.

Toncoin Total Value Locked
Toncoin TVL | Credit: DeFiLlama

Previously this year, when Solana’s decentralized exchange volume flipped Ethereum, the rise of liquid staking solutions such as Jito drove this increase. So, the trend has been ongoing for this year, and Toncoin is the latest blockchain to benefit from it.

The decentralized exchange STON.fi is in second place in the TVL ranking with $218 million, while no other protocol has more than $100 million.

Notcoin, the token for a mini application on Telegram, has also surged since its debut earlier this month, possibly driving interest to TON.

TON Trades in Upper Portion of Range

The TON price had fallen under a descending resistance trend line since its all-time high of $7.70 on April 11. The trend reversed on May 1, with a bounce that validated the $5 horizontal support area and caused a breakout from the trend line three days later.

While the breakout led to a notable rally, the TON price barely failed to reach a new all-time high on May 13 (red icon). Then, it fell, validating the $7.50 area as resistance.

The trading range for TON appears to be between $5 and $7.50. Currently, the price trades above this range’s midline (black), a positive sign that bodes well for the future trend.

TON Trading Range
TON/USDT Daily Chart | Credit: TradingView

However, neither the MACD nor RSI give strong signals to point to a bullish outlook. The RSI is hovering barely above 50 and the MACD is doing the same at 0. Additionally, the latter has not made a bullish cross.

So, the price action and indicator readings alone are not sufficient to confirm the future trend’s direction.

Toncoin Price Prediction: New All-Time High Incoming?

The wave count suggests that TON has started the fifth and final wave of its upward movement. The increase started with the May 1 bounce at the 0.5 Fibonacci retracement support level (green icon) and was confirmed with the breakout from the descending resistance trend line. 

TON nearly reached a new all-time high on May 13, but fell after a rejection. Nevertheless, the price has regained its footing and could soon resume its increase.

TON Wave Count
TON/USDT Daily Chart | Credit: TradingView

The most likely are for the top of wave five is between $8.85 and $9.50. The 1.61 external Fibonacci retracement of wave four (black) creates the upper limit of the target. The lower limit is created by giving wave five 0.618 times the length of waves one and three combined (yellow).

If wave five extends, the next target for a top will be at $11.40. This will give wave five the same length as waves one and three combined.

Toncoin’s Price to Follow Total Value Locked

Toncoin’s growth is showcased by its TVL value, which is at an all-time high. While the TON price action and indicator readings are not enough to confirm the future trend’s direction, the wave count is bullish, implying that a new all-time high is likely. If this happens, TON is likely to increase between $8.80 and $9.50.

Disclaimer

All information provided in this article is the opinion of the author and for educational purposes only. Avoid construing this as financial advice. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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