Toncoin Surges 17% on Strong On-Chain Flows and Derivatives Demand

Toncoin (TON) has defied the broader cryptocurrency market’s recent cooling-off period, rallying approximately 17% from its weekly low to high. The move has drawn attention from traders and analysts alike, as the asset continues to show bullish momentum amid a generally bearish environment [1].

The rally has been supported by robust on-chain activity and increasing derivatives demand. According to data from Coinglass, TON’s spot net inflows surged to a multi-month high of $13.35 million on July 31, marking the highest daily inflow of the year [1]. Simultaneously, open interest in TON futures rose past $384 million in the last 24 hours, hitting an all-time high. The increase in open interest, coupled with rising volumes, suggests heightened trader participation and confidence in the asset [1].

Toncoin’s price action has also demonstrated technical strength. It recently retested the $3.7 level, a former resistance from May, before settling around $3.5 at press time. The Relative Strength Index (RSI) remained at 65.78, indicating that the asset was not yet overbought and had room for further gains [1]. The Moving Average Convergence Divergence (MACD) also remained above its signal line, reinforcing the bullish sentiment [1]. On TradingView, TON received nine out of 17 buy signals, with key support levels identified at $3.28 and $3.05 [1].

The underlying TON ecosystem has also seen strategic developments that have bolstered investor interest. The TON Foundation announced a collaboration with Kingsway Capital to create a Toncoin treasury company, aiming to transform the cryptocurrency into a reserve asset. This initiative is modeled after Bitcoin's strategy of institutional adoption and is intended to stabilize the TON ecosystem and encourage long-term participation [1].

Additionally, TON’s network activity has shown signs of renewed growth, with over 2 million daily transactions and more than 45 million active wallets. The network has also outlined plans to support developments in key areas such as payments, AI, simplified DeFi, GameFi, and Telegram’s in-app economy. These plans aim to drive organic growth and development, similar to the 2024 surge fueled by play-to-earn games [1].

The recent price surge has been further supported by the fact that TON remains significantly discounted compared to its historical highs. At press time, Toncoin was trading at approximately $3.50, representing a 57% discount from its all-time high in June 2024. This has fueled optimism among investors, who view the current price as a potential entry point for future appreciation [1].

Looking ahead, analysts are monitoring key price levels to determine whether the bullish momentum can be sustained. A breakout above $3.61, the 1.618 Fibonacci extension, could set the stage for a test of $3.85 or even $4.00. Long-term forecasts suggest a potential move toward $6.93, should the positive momentum continue. According to crypto analyst Carl Moon, the breakout from a falling wedge pattern indicates a path toward higher levels, with strong indicators and inflows supporting the case for further gains [1].

However, caution remains warranted. Key Fibonacci support levels at $3.34 and $3.38 could provide defense in the event of a pullback. Additionally, the Volume-Weighted Average Price (VWAP) at $3.54 serves as a critical short-term support line. A break below $3.54 could lead to a decline toward $3.30 or $3.15 [1].

At press time, Toncoin was trading at around $3.50, up 2.48% in the last 24 hours. As investors assess the next phase of TON’s price movement, continued monitoring of derivatives positioning and on-chain activity remains essential for both short-term traders and long-term holders.

Source:

[1] https://bravenewcoin.com/insights/tonecoin-ton-price-prediction-can-ton-sustain-momentum-and-rally-toward-6-93-as-rsi-and-macd-flash-green

[2] https://www.forbes.com/digital-assets/assets/major-major/