On Monday, the cryptocurrency market witnessed a sudden downtick as Bitcoin recorded a 2.5% dip in the U.S. trading session. However, the sell-off had a shallow impact on the altcoin market as the recent launch of Spot Ethereum ETF uplifted the general market sentiment. The Toncoin Price analysis showcased a 1.5% dip to $6.85 heading toward the multi-month support of the triangle pattern.
Toncoin Price Analysis: DeFi Growth and Low Inflation Rate Signal Stability
Toncoin Price| Tradingview
The crypto market witnessed a renewed recovery trend since July second week as Bitcoin rebounded above $60000. While most major altcoins leveraged this bullish momentum recovery in the June correction, the Toncoin traded sideways.
For the past two months, the TON coin resonated with two converging trendlines indicating the formation of the triangle pattern. These trendlines as the major dynamic resistance and support strongly influencing this TON price movement.
With a weekly loss of 6.5%, the Toncoin price analysis shows a drop to $6.85, while the market cap was $17.25 Billion. If the supply pressure persists, this coin may plummet another 3.6% to retest the triangle’s lower trendline.
This support intact since May 2024 can assist the TON buyers to recuperate the bullish momentum.
According to The Block Pro, TON’s DeFi sector has seen substantial growth, with Total Value Locked (TVL) increasing from $13.8 million to $758 million. This surge is driven by platforms like DeDust and the support of Telegram’s 900 million users, aiming to lower entry barriers with “mini-apps.” The sharp rise in TVL indicates a robust adoption of TON’s DeFi platforms and a growing confidence in the network.
3/ In 2024, the TON network’s annual inflation rate is 0.62%, with the circulating supply increasing by ~9% since the start of the year, reflecting significant growth in staked or locked tokens. pic.twitter.com/952RPntRkM
— The Block Pro (@TheBlockPro__) July 23, 2024
In 2024, the TON network’s annual inflation rate is 0.62%, with the circulating supply growing by 9% since the start of the year. The low inflation rate combined with increased staking activity highlights the network’s potential for sustainable growth and stability.
Thus, a potential rebound from the triangle pattern will push the Toncoin price back $8, and challenge the overhead trendline. A successful breakout out from the upper boundary will intensify the bullish momentum and may drive the recovery rally to $8.5, followed by $9.5.
Technical Indicator
EMAs: The 100D Exponential Moving Average coinciding with triangle support creates a suitable reversal region for coin buyers. Moreover, the price held above the 200D EMA accentuates the broader trend as bullish.
RSI: The daily Relative Strength Index slope dip to 40% hints the sellers are strengthening their grip over this asset for triangle breakdown.
Frequently Asked Questions (FAQs)
Total Value Locked (TVL) represents the total capital held within a DeFi (Decentralized Finance) platform or protocol.
Staking activity refers to the process of holding and locking up a certain amount of cryptocurrency in a wallet to support the operations of a blockchain network
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify overbought or oversold conditions in a market.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
