Toncoin price has recorded significant gains over the past few weeks despite the decline in crypto market sentiment. The asset has jumped by more than 57% in the year to date and nearly 26% in the past week. Even so, Toncoin remains 13% lower in the year to date. Toncoin’s total market cap has climbed over the past few days to $6.5 billion, ranking it 11th in the cryptocurrency market.
What is Toncoin?
Toncoin is a decentralized layer-1 blockchain created by brothers Nikolai and Pavel Durov and later developed by the encrypted messaging platform Telegram in 2018. The project was taken over by the TON Foundation which was later renamed from “Telegram Open Network” to “The Open Network”. Toncoin utilizes the proof-of-stake consensus model network for reliability and scalability, and to validate transactions.
The developers focus on scalability, efficiency, and mass adoption. The network provides ultra-fast transactions, verifying and processing a massive number of transactions per second. The TON network offers several services, including the TON wallet, a built-in wallet function designed to transfer funds and interact with platform services. According to the TON website, the platform provides its customers with fast, transparent, and secure payment services.
The crypto market has been moving slowly over the past few days, with the premier cryptocurrency Bitcoin, struggling below the crucial level of $26,000. On the other hand, Toncoin price continues to defy current market movements, posting significant gains over the past week. Toncoin has been among the best-performing altcoins over the past few days, with major altcoins such as Ethereum and XRP succumbing to general market sentiment.
Data by CoinGecko shows that the value of the digital currency has grown by more than 35% over the past week. The upside in the asset’s performance has been buoyed by the growing developer activity in the Toncoin network. The number of monthly developers actively working on the proof-of-stake blockchain has jumped by more than 40% since the start of the year, driving the demand for the token higher.
Despite a decline in the number of TON whale transactions, the amount of TON’s supply on exchanges has skyrocketed in the past two weeks. The total amount of Toncoin on exchanges has jumped by more than 15% during the period. The confluence of these factors has renewed bullish momentum for the asset after a bumpy summer.
Toncoin Price Technical Analysis
The daily chart shows that the Toncoin price has been on a strong bullish run for the past few weeks, jumping to its highest level since May 2023. The asset remains above the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. Its Relative Strength Index (RSI), which measures the balance between the buying and selling pressure of an asset, is in the overbought region at 74.
Therefore, the Toncoin price is likely to climb higher in the ensuing sessions as bulls eye the important resistance level of $2.00. If this happens, the next resistance level to watch will be $2.2290. However, a move below the 200-day EMA at $1.680 will invalidate my bullish thesis, pushing the price lower to the next support at $1.500.