Toncoin May Struggle to Break $6 in 2024: Here Is Why

by

As a seasoned researcher with over two decades of experience navigating volatile markets, I find myself intrigued by the rollercoaster ride that Toncoin has been on lately. Having closely observed the cryptocurrency market’s ebb and flow, I must admit, Toncoin’s recent performance reminds me of a game of Jenga – stacking up promises, only to have them tumble down with each new challenge.

Toncoin, which shares ties with messaging giant Telegram, has been experiencing turbulent movements in recent weeks. Initially regarded as a potential pioneer within the blockchain realm due to its strong user base connection, Toncoin has lately battled volatile price swings and is having difficulty holding crucial support points. Investors who were previously bullish on the token’s long-term outlook are now becoming increasingly apprehensive as Toncoin struggles to recover from these setbacks.

Overall, the cryptocurrency market is facing a time of unrest, yet the performance of Toncoin has been especially concerning. Repeated efforts to surpass $5.96 have not been successful, causing some investors to wonder if Toncoin can regain its bullish trend before October ends. As the token is currently trading below multiple important support levels, a quick rebound seems less likely.

Amid increasing selling pressure, Toncoin’s trajectory seems to be pointing downwards due to certain technical indicators and whale activities. Despite its close ties with Telegram that initially sparked enthusiasm, Toncoin now stands at a critical crossroads. To regain momentum and aim for the $6 mark, it must hurdle over both technical and psychological obstacles as the overall market sentiment has turned bearish. This article delves into the factors behind Toncoin’s recent slump and evaluates its potential for recovery in the short term.

Bearish Sentiment Clouds Toncoin’s Future

In simpler terms, the Ichimoku Cloud chart, a popular tool in stock analysis, is predicting a downtrend for Toncoin at present. When the cloud is positioned above the price bars, it usually means there’s a possibility of falling prices in the near future.

As an analyst, I find myself observing a configuration that suggests Toncoin’s downtrend might persist, potentially hindering any immediate recuperation. The Ichimoku Cloud, which I’m closely monitoring, points towards a negative trend line extending through October, indicating that Toncoin could face challenges in making substantial advancements during this period.

1) The current feelings about the market are clearly showing signs of pessimism due to these negative indicators. Should these patterns continue, Toncoin might keep experiencing downward pressure until the market environment improves, potentially prolonging its struggle to reach higher cost brackets.

Moreover, it appears that Toncoin’s broader market conditions are experiencing pressure, particularly due to the actions of significant stakeholders. In the last 24 hours, prominent Toncoin holders, or “whales,” who control at least 0.1% of the total supply, have sold around 22 million TON. This transaction, valued at approximately $116 million, marks the most significant outflow observed in the past six weeks. This massive sell-off has raised concerns among influential investors about the near future of Toncoin’s market direction.

Large-scale transactions typically suggest doubts about a asset’s short-term potential. Persistent selling by significant investors may lead to a continued drop in Toncoin’s value, making any swift price recovery challenging.

Where Toncoin Could Find Support

At the moment, Toncoin is being bought and sold for $5.25 TON/USDT, which is lower than its crucial support point of $5.40. Over the last seven days, there’s been a 11.5% decrease in its value, and if selling pressure persists, Toncoin might fall even more, possibly bottoming out around $4.80. This potential drop would intensify the ongoing downtrend and potentially impact Toncoin’s future prospects.

historically, the $5.40 to $4.80 price band has served as a holding pattern for Toncoin, indicating that the coin might experience a slowdown in its price movement within this range. This period of stability could extend the feelings of disappointment among investors and postpone any potential signs of growth or recovery.

To escape this downward trend, Toncoin must regain its $5.40 support point. If it manages to bounce back to this position, it could gather enough momentum to challenge the $6.00 mark again. But if circumstances don’t improve, the coming days might continue to be tough for Toncoin.

TON Chain Explained

The TON blockchain, initially created by the group behind Telegram, serves as a decentralized network offering swift, scalable, and efficient blockchain solutions. Originally known as the Telegram Open Network (TON) in 2018, Nikolai Durov, brother of Telegram CEO Pavel Durov, spearheaded its development. The objective was to establish a blockchain capable of processing millions of transactions every second, making it an attractive choice for wide-spread usage.

As an analyst, I can share that I’ve been closely studying TON, a blockchain platform that employs a sophisticated Proof-of-Stake (PoS) consensus mechanism. This innovative network is equipped with groundbreaking technologies like sharding and Hypercube routing. These advancements enable the processing of numerous transactions simultaneously across various sub-networks, thereby enhancing its scalability significantly. Essentially, TON functions as a “blockchain of blockchains,” excelling in managing intricate operations swiftly and efficiently due to these features.

In 2019, our project encountered a major obstacle when the U.S. Securities and Exchange Commission (SEC) took action, voicing apprehensions about our Initial Coin Offering (ICO), which had amassed $1.7 billion. The SEC asserted that the sale of TON’s token, Gram, was an unregistered securities offering. This dispute ultimately led to us abandoning the project in 2020 and settling for a payment of $18.5 million to the SEC.

Regardless of the setback, the TON community was determined not to let their project fade away. After Telegram’s departure, the blockchain underwent a rebranding and continued development independently. In 2023, Telegram chose to reintegrate TON by incorporating Toncoin into its ecosystem, providing the project with a fresh start as it opened up direct interaction with the blockchain for its 800 million users.

Currently, TON serves as the foundation for numerous applications, such as decentralized data storage, domain name services (equivalent to TON DNS), and microtransaction systems (similar to TON Payments). These functionalities rely on its indigenous digital currency called Toncoin.

Read More

2024-11-22 18:34