Toncoin (TON) has witnessed a remarkable surge, soaring by 380% since September 2023 and overtaking Avalanche (AVAX) to secure its position as the 10th largest cryptocurrency by market capitalization. This article explores the factors driving TON’s impressive rally and examines the potential for further growth.
Price Surge Propels TON into Top 10 Status
Toncoin’s ascent to the top 10 cryptocurrencies began with its price rallying to $5.50 on April 5, accompanied by a surge in market capitalization exceeding $18.9 billion. This surge enabled TON to surpass Avalanche (AVAX) and solidify its position among the leading digital assets.
Toncoin (TON) Price Action September 2023 to April 2024 | Source: TradingView
A pivotal factor contributing to TON’s exponential growth has been its integration into the Telegram social media platform. Telegram Founder Pavel Durov’s announcement of a new financial reward system for channel owners using TON cryptocurrency in March 2024 ignited further interest in TON among investors. Additionally, the availability of Toncoin for purchasing advertisements on Telegram, coupled with the anticipation surrounding Telegram’s potential IPO, fueled a surge in capital inflows into TON.
Market Sentiment and Technical Indicators
Toncoin (TON) Funding rate vs. Price | Source: Coinglass
Despite TON’s remarkable rally, on-chain data indicates that investors remain cautious. Coinglass‘ funding rate metric reveals that while TON’s price surged by 15% between April 2 and April 6, the funding rate remained relatively stable. This suggests that the rally is primarily driven by organic market demand rather than speculative trading. Furthermore, the prevalence of hedging activity among traders contributes to market stability, reducing the likelihood of sharp price fluctuations in the near term.
TON Aims for $6 Amidst Neutral Funding Rate Trends
Toncoin (TON) Price Forecast | April 2024 | GIOM data | Source: IntoTheBlock
Looking ahead, TON’s price forecast remains optimistic, with a target of surpassing $6 in the coming days. The neutral funding rate trends and the organic surge in demand resulting from TON’s integration with the Telegram social network are expected to support further price appreciation. However, resistance may be encountered at the $5.52 territory, where a significant number of addresses acquired TON at an average price of $5.52. In the event of a market downturn, the $4.53 area is identified as a vital support level to watch.
