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Toncoin (TON), the native cryptocurrency of The Open Network, saw a significant price increase. This increase made TON trade close to $7.12, getting near a crucial resistance level of $7.28. However, the price has depreciated slightly and as such investors are wondering if a breakout is around the corner.
At press time, TON had corrected by over 5.60% with the price exchanging hands at $6.60.
During the decline, TON’s market capitalization dipped by 5.30% to $16,611,493,994 while the 24 hour trading volume surged by 68% to $665,131,755.
Toncoin’s recent price action is backed by on-chain data suggesting that investors are becoming more optimistic. Data from IntoTheBlock also shows that the number of large transactions has also increased with the rally in the price of TON.
This accumulation phase is often regarded as a preliminary stage to a breakout since more investors are adding more positions expecting further price appreciation.
Moreover, the Stochastic Relative PowerIndex confirmed that TON was overbought during the recent rally. This implies that the market may undergo a temporary reversal that may facilitate the elimination of the fair value discrepancies brought about by the swift price change. While a slight pull back cannot be ruled out, the overall market sentiment is still bullish, with traders keeping a keen eye on potential resistance levels.
However, the Moving Average Convergence Divergence (MACD) shows that the bulls are still in control. Its movement in the positive region imply that the this bearish divergence may be consolidation zone with market gearing up for a break out.
There is a number of factors which contributed to the recent growth of the Toncoin price and all of them are related to its ecosystem. Among the most important is its listing on the Binance Launchpool platform, which was announced to start on August 15. The largest cryptocurrency exchange by trading volume, Binance, incorporated TON as the 56th project on its Launchpool, where users can stake BNB and FDUSD to get TON tokens.
This listing came after TON was added on Binance’s spot trading at the beginning of the month, which led to a 14% surge in price.
Besides the listing on the Launchpool, The Open Network has partnered with Pyth Network, a decentralized data-oracle protocol. This partnership focuses on improving the developer experience on the TON blockchain through offering accurate and reliable data feeds. Through this announcement, the pull oracle service of Pyth will be integrated in DeFi projects and gaming applications on TON which will enhance the interest of developers and users in the ecosystem.
The Open Network has continued to experience increased usage and popularity in the course of 2024. Some of the statistics, including unique daily active addresses (DAA) and daily transactions, have risen sharply, with TON now outpacing Ethereum in these areas since June.
This growth shows that TON is gradually being adopted by users, especially within the Telegram environment where casual games have played a significant role in boosting its adoption.
Moreover, the total value locked (TVL) on TON has risen dramatically, reflecting increased user engagement with the network. Data from DefiLlama shows that TVL on TON grew from $22.92 million in March to an all-time high of $776.6 million in July. Although there has been a slight decrease since then, the current TVL remains robust, supporting the ongoing demand for Toncoin.
