Key Highlights
- Toncoin gained more than 24% within 24 hours, reaching around $2.15.
- TON’s market capitalization rose to approximately $5.81 billion during the rally.
- Increased ecosystem activity linked to The Open Network and Telegram may have supported the recovery.
Toncoin (TON), the native token of The Open Network, gained more than 24% in the past 24 hours to trade around $2.15. The sharp recovery follows a steep decline earlier in the week.
At the time of this writing, Toncoin was trading around $2.15, showing a gain of 24% in the past 24 hours and 10.85% in the past week. The market cap of Toncoin stood at $5.81 billion, representing over a 24% rise in the past 24 hours, according to CoinMarketCap.
Trading volume reached about $398.2 million in 24 hours. Toncoin currently has a fully diluted valuation (FDV) of around $11.18 billion, with a circulating supply of approximately 2.69 billion TON out of a total supply of 5.18 billion.
Technical indicators show bullish momentum
Technical indicators show bullish sentiment at the moment. Most moving averages of various periods are indicating a buy signal. Particularly, the Exponential Moving Averages (10, 20, 30, 50), along with Simple Moving Averages, are within the Buy territory, which implies that there will be positive upward movement in the short/medium run. Oscillators, on the other hand, reveal a balanced yet mostly optimistic sentiment.
While the Relative Strength Index is showing an RSI of 55.56 without going into an overbought state, the Moving Average Convergence Divergence is pointing towards a sell indication.
The one-day technical meter reading shows a very clear indication of a strong buy, supported by 16 buy signals, 8 neutral indicators, and only 1 sell signal. On the Fibonacci scale, one-week pivot points suggest immediate resistance close to $4.76-$5.99, while strong support is expected around $0.74.
However, the recovery is something that needs to be taken with caution. TON is still around 74% lower than the all-time high of $8.24 seen in June 2024. In the past 24 hours, the token witnessed a low of $1.73 with a high resting at $2.16. Another point worth noting is the high FDV/MCap ratio, which may lead to sales in the future. In another major rally, TON skyrocketed more than 120% over the past seven days on May 7.
Ecosystem activity and market sentiment
This spike in the value of Toncoin can be explained by several reasons. The blockchain associated with Telegram has been seeing an increase in the activity of its ecosystem, particularly in such spheres as mini-applications, games, and decentralized finance powered by The Open Network. New confidence in Telegram’s user base could have been one of the reasons for this.
Moreover, price movements currently indicate a positive market sentiment towards Layer-1 utility-based tokens. Though surging 24-hour performance, its sustainability depends upon further ecosystem growth and activity, as well as developments within the entire cryptocurrency space.
Based on technical indicators that are supportive and the increase in volume, the token looks to be recovering bullish momentum. It would be prudent for traders to gauge whether or not the recovery becomes a trend.
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