Can Toncoin (TON) Price Skyrocket by 50% This June?
The price of Toncoin (TON) has surged by over 200% so far in 2024, and the momentum may continue through June due to several bullish indicators. Let’s delve into these factors driving TON’s potential for further gains.
TON Nearing Ascending Triangle Breakout
Toncoin (TON) is on the cusp of a significant price movement, primarily due to an ascending triangle pattern. This technical analysis underpins a strong bullish outlook.
TON’s price has been consolidating within a triangle-shaped range, marked by a horizontal trendline resistance and a rising trendline support. This pattern indicates that buyers are progressively willing to pay higher prices, while sellers are unloading positions at a specific resistance level.
Ascending triangle patterns in an uptrend typically break out above the resistance line, often accompanied by increased trading volumes. The breakout target is calculated by adding the breakout price level to the maximum price distance between the triangle’s upper and lower trendline. Applying this rule to TON’s current price movement projects an upside target of around 11.80%, potentially over 50% above current price levels.
The alignment of moving averages, which serve as support levels for TON, and the current RSI level, still below the overbought threshold of 70, further enhance the positive outlook for TON’s price growth. This alignment provides additional confidence in the bullish projection.
Toncoin Network Growth Bolsters Bullish Outlook
TON’s potential 50% rally in June is further supported by its substantial network growth in recent months.
For instance, the total-value-locked (TVL) across the TON blockchain hit a record high of 55.8 million TON on June 5, up from 5.94 million TON at the start of the year—a staggering increase of about 830.65% year-to-date. This surge indicates that more users are committing their TON holdings to the network, signaling increased utilization and adoption.
As more value is locked in the TON ecosystem, the demand for TON tokens typically rises. This is because users often need TON tokens for various DeFi activities, such as staking, lending, borrowing, and providing liquidity. The increased demand, coupled with a relatively fixed supply, exerts upward pressure on TON’s price.
Strong Accumulation Trend for TON
An analysis of the Toncoin (TON) supply distribution chart from Santiment reveals a growing accumulation trend among its wealthiest address cohorts.
For example, wallets holding 10,000 to 100,000 coins have increased their holdings. From mid-March to early June, the percentage of TON held by these wallets grew, reaching around 32.27% by June 6. This trend indicates that smaller investors, including retail or small institutional investors, are accumulating TON.
Conversely, wallets holding 100,000 to 1,000,000 coins have shown a slight decline in holdings. The percentage of TON held by these mid-sized wallets decreased from about 31.39% in mid-March to around 30.93% by June 6, 2024. This slight reduction likely points to profit-taking or portfolio rebalancing rather than a broader loss of confidence.
The modest decline in mid-sized wallets’ holdings suggests that while there is some selling pressure, it is not substantial enough to signal a lack of confidence. The overall accumulation trend and increased network activity strongly support a continued bullish outlook for TON.
Conclusion
Toncoin (TON) has shown remarkable resilience and growth in 2024, and several indicators suggest that this trend could continue. The ascending triangle pattern, robust network growth, and strong accumulation trends all point to the potential for further price increases. As the market stabilizes and investor sentiment remains positive, TON may well see a significant rally, possibly achieving a 50% gain in June. Keep a close watch on these technical indicators and market trends to make informed investment decisions.
