Toncoin Unaffected by Crypto Market Fall: Is TON Price Rise Sustainable?
TON price recovered by 30% in August. Will the rise continue?
Key Takeaways
- TON developer activity increased by 102% year-on-year
- Projects migrating to TON Network
- However, chart analysis points out near-term downside
TON Network is the layer 1 proof-of-stake (PoS) blockchain. It is optimized for scalability as it is comprised of a multi-layered network of a master chain and several work chains and shard chains.
Once, it was closely tied to the Telegram messaging app as Telegram CEO Pavel Durov is TON’s co-founder, and the TON stands for “Telegram Open Network (TON)”. Due to regulatory pressure and implications, it has severed its ties and the TON acronym now stands for “The Open Network”.
That the TON network isn’t just a money grab, piggybacking off of Telegram’s large userbase, but is trying to establish itself as a leading layer 1 network, can be seen by the recent spike in developer activity and some projects’ notable migrations on to the platform.
TON’s price has been rising since the start of the month. It went to increase by 30%, coming from its August 1 low of $1.17 to $1.52 at its highest point yesterday. This has come while the general crypto market has been mostly on a decline throughout August.
Has the recent wave of positivity sparked a sustainable uptrend for the price of TON token?
TON Development Activity
The TON Developer Report for Q2 2023 highlighted strong growth in the TON network’s development activity, with developer involvement surging by 102% year-on-year. By the end of June, the developer count reached 9,134, marking a 6.56% increase from April’s figure of 8,572.
This rise was attributed in part to events like the DoraHacks hackathon . The TON Foundation also revealed that their new payment system, Wallet Pay, allows Telegram users to effortlessly transact using crypto, such as Toncoin, BTC, and USDT, all through the Telegram interface.
Furthermore, in a landmark move, the Ton Foundation partnered with the BIT crypto exchange, making BIT the first to accept non-native, non-stablecoin tokens, like Toncoin, for trading fees.
Projects migrating
The recent surge in Toncoin’s value is attributed to Tap Fantasy, an MMORPG blockchain game, integrating with the TON Network . This move seeks to leverage TON’s vast user community and strong technical infrastructure. Such integration ensures a smoother transaction process for Tap Fantasy players, enhancing the game’s internal economies.
This move was made to TON Network’s cross-chain function, which can further enable Tap Fantasy with several advantages:
- Efficient Transaction Experience: The high performance and minimal transaction fees of the TON Network grant Tap Fantasy’s players an enhanced and efficient transaction journey, promoting the expansion of in-game economies.
- Security and Reliability: Constructed using advanced technology, the TON Network’s smart contracts and security features guarantee the protection of Tap Fantasy players’ assets and information.
- Community Collaboration: Cross-chain activities encourage interaction and collaboration between diverse blockchain communities, boosting the overall development of the blockchain gaming sector.
TON Price Analysis
From its last year’s high of $2.90 made in December, the price has been in a downtrend reaching $1.72 on August 3. This decrease in value by 59.62% was made in a three-wave manner, and the third wave came close to its 1.618 Fibonacci level of wave 1.
This could have been an ABC correction, as after the August low, we have seen some positive price action leading to a breakout above the descending resistance trendline. Also, on the August low, the RSI reached the lower bound of its range, tapping slightly the oversold zone, which usually indicates bottoms.
Alternatively, we could see wave 4 from the five-wave impulse with another lower low ahead. Zooming into the hourly chart, we can see that from August 3. The price structure appears to have been impulsive, as we can count a five-wave pattern.
In the near term, as a five-wave impulse develops, we expect an ABC correction of the same degree, most likely to $1.32. The main difference between the two outcomes is what happens after the expected down move.
If the price continues moving impulsively and reaches the 1.618 Fibonacci extension level at $1.85 then it could be starting a sustainable uptrend. But if it moves continues to move downward past the 0.618 Fibonacci retracement level at $1.32, then the likelihood of another lower low would increase.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
