The price of Toncoin (TON) reached its highest level in almost a year as cryptocurrency traders assessed a series of optimistic updates on its market, including a recent “giveaway” on Telegram.
As a result, TON is now the tenth largest cryptocurrency with a market capitalization of over $9 billion – an all-time high.
Telegram CEO buys $200,000 in TON
November 6, Telegram declare Giveaways, a feature that enables channel owners to randomly distribute prizes among their followers.
A day later, Telegram CEO Pavel Durov used $200,000 worth of TON tokens to pay for Telegram Premium subscriptions for 10,000 Telegram users.
It’s worth noting that Durov uses TON as a payment method in the giveaway feature, at least in this case.
The price of TON has increased by 19.5% since the launch of the giveaway, which coupled with increased trading volume shows strong buying interest. As of November 8, cryptocurrency prices had hit $2.71, the highest level in 11 months.
Telegram is a major supporter of Toncoin and has integrated the self-hosted wallet TON Space into its platform. This improves TON’s chances of greater adoption among Telegram’s 700 million monthly active users.
In addition, Toncoin recently Partnering with Blockchain.com Its approval in the Dubai International Financial Center Free Zone provided traders with a bullish signal, as evidenced by the upward price reaction shown in the chart below.
Toncoin Price Prediction
Toncoin price chart shows that it is overvalued from a technical perspective.
Notably, TON’s daily relative strength index has jumped above the overbought zone of 70. The RSI previously jumped into overbought territory causing a sharp price correction.
Additionally, TON’s multi-month horizontal resistance range of $2.60-$2.70 will be difficult to break. This area has capped Toncoin token’s multiple upward attempts since December 2022, further raising the possibility of a bearish reversal in the coming days or weeks.
Related: Wallets on Telegram default to hosting options for ease of use: Wallet COO
If this bearish scenario develops, a downside target to watch is the Q1 2023 support line near $2.22, a 17.5% decline from current price levels. This line is close to Toncoin’s multi-month uptrend line and its 50-day exponential moving average (50-day EMA; red wave).
Conversely, a decisive close above the $2.60-$2.70 resistance zone would allow TON to target $2.92 as its next upside target.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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