After a serious downswing Toncoin is showing signs of recovery. TON, with a market capitalization of over $12 billion, lost by 2.4% within the last 24 hours. On the other hand, on 8 October the Toncoin price dropped to $5.00 before making small gains. As of writing, TON is trading at $5.05 TON/USDT on Gate.io. However, its value decreased by 4.5% during the last 30 days. At the moment, TON is showing strong bearish momentum. As per its price action, TON is within a consolidation phase. The long-tailed candlesticks that have formed at the bottom of the 7-day price chart indicates a possibility of an upswing. The following graph shows TON’s current price action.
Toncoin Price Action – Coingecko
If the TON price surges above the down sloping trendline it may enter a recovery zone. At the same time Bitcoin faces a bleak future as its price fell by 2% within the past 24 hours. At this point, it is trading at $60,708 BTC/USDT on Gate.io exchange.
Looking Ahead: Will TON Bounce Take it to $6?
The Toncoin price can only rise if the market conditions become favorable once again. Considering the current network development its value may surge in the near future. For example, the total value of stablecoins on the Ton Blockchain has been rising steadily during the year. To illustrate, since April the stablecoin market capitalization on the blockchain has increased 13 X. Similarly, after the arrest of Telegram founder Pavel Durov it has risen by around 25%. Although his arrest negatively affected the performance of Toncoin, it has remained resilient. The increase in the total valuation of the stablecoins indicates the investors’ renewed interest in the coin. This is because a rise in the stablecoin market cap increases liquidity within the Ecosystem. That also increases the utility of the token as it will be in high demand which will likely drive the network’s different aspects such as staking.
Ton Blockchain Stablecoin Supply – x.com/Nickgarcia
Apart from the rise in the stablecoin supply there was an increase in activity on the network due to the launch of different airdrops. For example, Hamster Kombat and Catizen launched their airdrops in October.
Increase in Total Value locked
Apart from the increase in the stablecoins supply the network recorded a rise in its total value locked. According to data on Defilama, the Ton ecosystem total value locked (TVL) rose by 28%, from $317.2 million in September to $408 million in October. This indicates that many investors are willing to interact with the network. The following graph shows the change in Ton TVL.
Ton Ecosystem TVL – Defilama
A rise in the TVL shows that investors are participating in the Ton DeFi ecosystem. A further increase in its user-engagement will likely boost its price action.
Introduction of the Gift Feature
Another factor that may contribute to TON price surge was the recent introduction of a Gift Feature. A few days ago, Telegram CEO Pavel Durov announced the introduction of the feature which will allow the users to give gifts to their friends and relatives. The gifts can be converted into “Stars”, telegram’s virtual currency. It is important to note that the Telegram users can use the stars to promote content creators or to buy services in the mini-apps. Later, the users will be able to convert the Stars to TON-based NFTs.
Commenting on this Durov said, “Some gifts are in limited supply. Later this year we’ll introduce the ability to convert these limited-edition gifts into TON-based NFTs. Users will then be able to auction & trade these tokenized gifts outside Telegram, w/ ownership recorded on the blockchain.”
Also, Telegram introduced verification codes which will improve its reporting interfaces. Furthermore, it has redesigned its video chats on iOS. All these developments show how the team aims to boost the performance of the Ton ecosystem and bring more value to the users. Ultimately, these will attract more investors which may determine the value of the Toncoin in the long run.
TON Price Prediction
As said earlier on, TON is still within a bearish zone. However, it is showing strong signs of recovery. Within the last 24 hours the TON price dropped by about 2.4%. This, however, indicates that the coin’s price volatility is still stable. Notably, its trading volume which stands at $193 million increased by 9.03% within the same period.
If the TON selling pressure increases in the next few days its price may fall to $4.50, a strong resistance level. And still, there is a chance that its value may drop further to reach $3.3. On a contrary note, the TON value may rise towards $6 which is the current market target. If it reaches that price level it may instill confidence among investors which may boost its market performance. However, the direction the Ton price will take may also depend on the entire market performance and other factors such as the evolving economic environment and the regulatory outlook.
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