Telegram coin Toncoin recently witnessed a significant 18% rise in its price, reaching $5.42 this week. The surge follows Telegram CEO Pavel Durov breaking his silence last week regarding his arrest in France.
This seems to have ignited renewed interest in the cryptocurrency. With this spike, many investors are anticipating that Toncoin’s bullish trend will continue.
Firstly, the overall sentiment surrounding Toncoin has been increasingly positive, as demonstrated by the sharp rise in the number of addresses holding a balance. Since the beginning of September, the total number of addresses surged by 64%, climbing from 37.13 million to 60.92 million. This jump starkly contrasts with August, which saw only a 20% increase from 30.84 million to 37.13 million throughout the month.
Such rapid growth in the total addresses highlights an increase in demand and interest among investors. It points to an expanding user base and broader adoption of Toncoin.
Read more: 6 Best Toncoin (TON) Wallets in 2024
Toncoin Total Addresses. Source: IntoTheBlockSecondly, from a macro perspective, Toncoin’s bullish momentum is building, though a key technical indicator suggests a potential challenge for the rally. The Relative Strength Index (RSI), which measures an asset’s momentum, is currently hovering just below the neutral line of 50.0. This positioning indicates that while the upward momentum is building, it has yet to break into a bullish signal fully.
Thus, Toncoin’s price growth could slow down briefly. However, the overwhelming enthusiasm from investors may propel the cryptocurrency past this neutral point. If the RSI pushes above the 50.0 threshold, it would signal a further rally, with investors eyeing higher targets.
Toncoin RSI. Source: TradinViewFinally, Toncoin’s recent 18% surge to $5.42 within three days has placed it close to breaching a key resistance level at $5.53. A break above this resistance could signal even more significant gains in the short term.
If the barrier at $5.53 is flipped into support, the Telegram coin could aim for $5.93, its next major resistance level. Should TON clear this level, the price may continue to climb toward $6.00, an important psychological barrier for traders. Such a breach would solidify the bullish outlook and further entrench investor confidence.
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Toncoin Price Analysis. Source: TradingViewHowever, if Toncoin’s bullish momentum falters, the price could consolidate just above $4.86, a strong support level. This would represent a second failed attempt to breach resistance within a month, invalidating the bullish narrative in the short term and signaling a possible retracement.