Toncoin surges 20% as Telegram integrates EVM DApps

The launch of the TAC mainnet has generated considerable excitement within the cryptocurrency community, with a particular focus on Toncoin (TON). This development enables Telegram’s one billion users to interact with Ethereum Virtual Machine (EVM) decentralized apps (DApps) directly within the messenger platform. This integration is expected to significantly lower the technical barriers for mainstream users, potentially driving increased adoption of DApps and asset inflows into the TON network.

Analysts have observed that TON is showing early signs of a breakout, which could lead to a rally towards $3.50. The cryptocurrency has surpassed its moving averages and is nearing the downtrend line of a descending triangle pattern. The 20-day exponential moving average (EMA) has begun to rise, and the relative strength index (RSI) has entered positive territory, indicating a buyer's advantage. However, sellers are anticipated to strongly defend the downtrend line, as a break above it could invalidate the negative setup and drive the TON/USDT pair to $3.69.

On the four-hour chart, both moving averages have started to turn up, and the RSI remains in positive territory, suggesting that bulls have the upper hand. Buyers are likely to attempt to push the price to the downtrend line, which could present a substantial challenge. If the price turns down from the downtrend line but bounces off the 20-day EMA, it indicates a bullish sentiment, increasing the likelihood of a break above the downtrend line. In this scenario, the pair could rally to $3.40 and then to $3.50.

Conversely, if the price turns down sharply from the downtrend line, it suggests that bears remain sellers on rallies, potentially keeping the pair within the triangle for an extended period. Sellers will gain the upper hand if they push the price below the $2.75 support. Similarly, a drop below the moving averages suggests that bulls are losing their grip, and the pair may slump to $2.90.

It is crucial to recognize that this analysis is based on technical indicators and does not constitute investment advice or recommendations. Every investment and trading move involves risk, and individuals should conduct their own research when making decisions.