Toncoin Rally: TON Rises 25% in 24 Hours but What Next?
TON spikes parabolically, but can it sustain more upside?
Key Takeaways
- Toncoin surges 25%, market cap exceeds $12 billion.
- Trading volumes spike by 350%, indicating strong investor interest.
- Potential entry into top 10 cryptocurrencies speculated.
Toncoin, a cryptocurrency closely associated with Telegram, surged on March 12. This impressive uptrend saw Toncoin’s value increase by over 25% within 24 hours, pushing its market capitalization beyond $12 billion.
Trading at $3.60 at the time of writing, Toncoin‘s ascent has been accompanied by a 350% spike in trading volumes.
Speculation is rife within the financial circles. The question remains whether Toncoin’s momentum can propel it into the top 10 cryptocurrencies, potentially surpassing established names such as SHIB, Dogecoin, and Cardano.
TON Fundamentals
Market analysis from Santiment indicates that the TON‘s price rise is due to capital outflowing from Bitcoin and Ethereum.
In addition, the notable exodus of Toncoin from exchanges suggests a trend of acquisition and long-term holding by investors. Significant whale transactions and an increased long/short ratios support this. In turn, this hints at a bullish outlook for the token’s future.
TON Price Analysis
TON attempted another rise after an uptrend that started at $1.10 in August 2023 and finished at $2.60 in September. It reached a marginally higher peak of nearly $2.80 on November 8 before encountering a significant drop.
The price movements in December suggest that Toncoin was in a consolidation phase. It formed a symmetrical triangle with a support level of an ascending channel anchored at its June 18 2022 low of $0.77.
As it found support on another interaction at $2 on February 6, TON began its parabolic increase, spiking to nearly $4 on March 12. It reached the upper ascending trendline from the major ascending channel on a five-wave count.
This could indicate that the rise ended with a 6.7% wick on the daily chart and the RSI at 84%, indicating overbought conditions. The parabolic run-up could be completed or near completion, but the overall uptrend from August is still shown.
The expected completion of this rise could trigger a retracement that should cool off the price and would likely be its fourth wave of a higher degree count. Our target for this retracement would be around $3. If it manages to hold above it, more upside would be expected, with a new all-time high in sight.
Disclaimers
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.
