In Wednesday’s US trading session, the cryptocurrency market showed a bearish outlook as Bitcoin neared the $60,000 mark. Like most major cryptocurrencies, Toncoin price also faced downward pressure, recording a 1.5% intraday loss and approaching the $5 support break. As the TON blockchain sees a new increase in stablecoin supply, will the bearish momentum stabilize and potentially reverse?
Stablecoin supply on TON blockchain surges 13x, TONcoin price aims to recover to $6
After the arrest and court drama surrounding Telegram founder Pavel Durov, the TON network is showing signs of resilience.
According to Nick Garcia, a crypto enthusiast who received information from Messari, the supply of stablecoins on the TON blockchain has surged 25% since the arrest, and has increased 13x overall since April. Despite the confusion surrounding Durov’s arrest, this increase highlights renewed interest and growth in the TON ecosystem.
Increased supply of stablecoins often increases liquidity and network usage, which could increase demand for Toncoin as a utility token for transaction fees and staking, thereby supporting price appreciation. I will.
Following the confusion surrounding Pavel, @ton_blockchain Showing signs of life.
The supply of stablecoins has increased by 25% since the arrest, bringing the total increase since April to 13x.
If you squint, this situation is similar to FTX. pic.twitter.com/NCtS0zqCgY
— Nick Garcia (@NickDGarcia) October 8, 2024
According to DefiLlama, TON’s Total Value Locked (TVL) has shown a notable increase, increasing from $317.2 million to $402 million over the past month, reflecting a growth of 26%. The increase in TVL suggests that more inverters are pinning their assets to the TON network and participating in decentralized finance (DeFi) protocols.
Nick Garcia also compared this scenario to FTX, which faced a major bankruptcy, and offered a cautious outlook for investors and users.
TON price plunges 8% amid downward resistance
Amid the ongoing war between Iran and Israel, Toncoin’s price has seen a sharp reversal from $6.06 to $5.06, a 17% increase. This bearish turn on the daily chart marks another reversal from the resistance of the downtrend line, indicating that sellers continue to defend the highs.
Dynamic resistance, which has remained intact since July 2024, may again become a selling pressure and trigger a prolonged correction in assets. If selling pressure continues, TON price could fall to $4.5, with further downside risks potentially pushing it towards $3.3.
TON/USDT -1d chart
Conversely, a bullish breakout from the overhead trendline would indicate that the recovery trend is gaining momentum and propel a rally above the $6 swing high towards the $7.2 resistance.
Frequently asked questions (FAQ)
Toncoin is showing signs of resilience, with the supply of stablecoins on the TON blockchain surging 13x since April, boosting liquidity and network activity. However, with recent bearish pressure and the ongoing legal drama surrounding Pavel Durov, investors should watch for a bullish breakout from the downtrend line to confirm a sustained recovery.
If the bearish trend continues, Toncoin could fall by 8.8% and reach the $4.5 support level.
Toncoin is undergoing a correction due to the downtrend line that has been going on since July 2024.
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Sahil Mahadik
Sahil is a dedicated full-time trader with over 3 years of experience in financial markets. He has a strong grasp of technical analysis and keeps a close eye on daily price movements of top assets and indices. Drawn by his fascination with financial products, Sahil enthusiastically embraced the emerging field of cryptocurrencies, where his passion for trading continues to explore opportunities.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
