The TON Masterchain, the foundation of Telegram’s blockchain ecosystem, is experiencing a surge in activity, reaching a record high of 946 daily active addresses. This marks a significant 7x increase since July 2021, according to data shared by analyst Kyledoops (formerly on Twitter). This growth is a positive indicator for the TON network, suggesting rising user engagement, the expansion of decentralized applications (dApps) and workchains, and potentially higher demand for the native token, Toncoin (TON).
While some analysts have questioned the sustainability of TON’s growth due to the seemingly low daily active user count, a broader view paints a bullish picture. Recent market metrics suggest solid progress on the TON network, with long-term potential.
Technical Analysis Points Toward Bullish Momentum For TON
Technical indicators on the Toncoin price chart support the optimistic outlook. The TON/USDT weekly chart recently formed a bullish reversal candle with a long tail, indicating buying pressure. This bullish signal is further strengthened by the increase in trading volume observed in recent weeks. Additionally, Bollinger Bands on the chart are tightening, suggesting a potential price squeeze that could lead to a significant upward breakout.
On the daily timeframe, TON is nearing a breakout above the 100-day simple moving average (SMA), a key resistance level. This technical hurdle could soon be overcome, allowing TON to establish a new trading range with higher support. Analysts predict a potential 50-60% bullish wave in the near future, with a price target of $10 per TON, signifying a substantial upward move for the token.
Altcoin Season on the Horizon – TON Set to Benefit
The broader cryptocurrency market also hints at bullish trends for altcoins, including TON. The recent retracement in altcoin prices has formed a technical pattern known as a “bull flag,” often associated with upcoming price surges. This signals a potential altcoin season on the horizon, further bolstered by the emergence of new memecoins like DOGS, created by Telegram CEO Pavel Durov. The utilization of DOGS to generate liquidity for TON suggests a synergistic relationship within the Telegram ecosystem.
Global Liquidity Poised for Breakout – Potential Gains for TON
Global cryptocurrency liquidity is poised for a significant increase, potentially triggering price surges for Bitcoin (BTC) and altcoins. According to data from the Bitcoin Strategy Platform, global liquidity has dropped significantly, creating room for substantial growth. This, coupled with the ongoing minting of Tether (USDT), a stablecoin used for trading, could lead to major price increases for TON and other crypto assets. Analysts predict these gains to materialize in late Q3 or early Q4 of 2024.
Also Read: Toncoin Holders Losing Faith – Price Could Tumble 10%
At the time of writing, TON’s market cap sits at $16.82 billion, with a fully diluted market cap of $34 billion. The 24-hour trading volume of $227 million indicates sufficient liquidity for the network. The circulating supply of TON tokens stands at 2.53 billion out of a total supply of 5.1 billion. This leaves room for future growth in network adoption and token value.
The record-breaking activity on the TON Masterchain paints a promising picture for the future of the TON ecosystem. Growing user engagement, the expansion of dApps and workchains, and positive technical indicators suggest a potential bull run for Toncoin (TON). As the broader cryptocurrency market gears up for an altcoin season, with global liquidity expected to rise, TON appears well-positioned to benefit from these trends. Investors and traders should keep a close eye on the evolving market dynamics surrounding TON, with Q3 and Q4 of 2024 potentially marking a period of significant price increases.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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