Increased Adoption of Toncoin – Is It Enough to Stop the Downtrend of TON?
The adoption of Toncoin has significantly increased, but will it help boost the price of TON?
- Technical indicators suggest a price increase in the coming days.
After a week of witnessing a double-digit price decline for [TON] Toncoin, bulls have finally taken control. However, it is noteworthy that while the coin’s price performance remained volatile, its adoption in the market surged significantly. This raises the question of whether this is enough to drive the coin’s price higher.
A Deep Dive into the Toncoin Ecosystem
IT Tech, a popular crypto analyst, shared a tweet highlighting several significant developments related to the Toncoin ecosystem. The tweet pointed out that the daily active addresses for Toncoin have increased, rising from 2.2 million in August to 3.8 million by late September.
This clearly indicates a substantial increase in the usage and adoption of TON worldwide.
Source: X
Another significant development related to whales was mentioned. According to the tweet,
Whale concentration is significantly high in the TON ecosystem, with GOMINING and JETTON showing a concentration of 97%. Such dominance by large holders can impact market dynamics and affect smaller investors and the overall liquidity of the market.
Aside from this, the token’s price performance has remained almost stable. Despite market fluctuations, Toncoin’s market value remained steady at $13.4 billion until late September. This reflects investor confidence and Toncoin’s strong position within the ecosystem, providing a sense of security amid volatility.
Will this help TON turn bullish?
While all this was happening, the price of TON fell by more than 9% over the past week. However, the last 24 hours have been favorable for investors as Toncoin experienced a price increase of over 1.8%. At the time of writing, the token was trading at $5.42.
Therefore, AMBCrypto planned to analyze the token’s on-chain data to determine whether the increase in adoption and other factors mentioned above are sufficient to sustain this bullish rally.
According to our analysis of Santiment’s data, the weighted sentiment for Toncoin remained in the positive zone for most of last week. This indicated that bullish sentiment around the token was high. Its social dominance was also relatively high, reflecting the token’s popularity in the crypto space.
Additionally, the supply of TON on exchanges recorded a significant decrease. This suggests that investors have been purchasing the token in hopes of a sustainable price increase in the coming days.
Source: Santiment
We then examined the daily chart of TON to see what market indicators suggest regarding a sustainable upward trend.
According to our analysis, the price of TON has reached the lower limit of the Bollinger Bands. Whenever this occurs, it indicates a high likelihood of a rally to the upside. If this indeed happens, TON may initially target $6.8.
However, in the event of bearish dominance, the price of the token could drop to $4.4 on the charts.
Source: TradingView
