One of the leading altcoins, Toncoin (TON), has seen an extraordinary price surge over the past two months, surpassing altcoins like Cardano (ADA) to become the ninth-largest cryptocurrency by market value. TON is currently trading at $6.35, with a market value exceeding $22 billion. This impressive performance has garnered significant attention within the cryptocurrency world.
Whale Activity and High-Value Transactions
A significant factor contributing to Toncoin’s rise has been the substantial increase in high-value transactions, particularly those exceeding 1 million USD. According to CryptoQuant, these transactions dominate Toncoin’s on-chain volume, indicating increased interest from large investors, often referred to as “whales.”
The increase in such transactions highlights growing network activity and robust value transfer capacity on the Toncoin Blockchain. The influx of large investors has played a crucial role in TON’s price surge so far.
Moreover, Telegram‘s recent initiative, Stars, has significantly impacted Toncoin’s price trajectory. Stars, set to launch on June 12, aims to revolutionize transactions within Telegram’s ecosystem, allowing seamless purchases within bots and tools. This announcement has captivated the cryptocurrency world, leading to increased speculation and expectations. Consequently, Toncoin experienced a notable price surge, reflecting the market’s positive response to this development. Additionally, the rising popularity of Telegram’s gaming community token, Notcoin (NOT), further contributed to TON’s price increase.
Challenges in Overcoming Resistance Levels
Despite its recent success, TON faces challenges in maintaining its upward momentum. The price recently attempted to surpass the resistance level corresponding to $7 but failed, leading to a decline over the past ten days. Following this failed attempt, TON’s price fell below the critical psychological support level of $6.5.
A brief broad market rally pushed the altcoin above this support, but the momentum was not sustained, and the price fell back to $6.2. This downward trend indicates that a change in investor behavior is necessary for a sustainable recovery.
If the current downtrend continues, TON could fall further to test the support level at $6. Losing this support could lead to a drop to $5.4. This potential decline underscores the importance of maintaining key support levels to prevent a more significant drop. Investors should closely monitor these levels to gauge Toncoin’s market position strength.
However, if TON’s price manages to stay above the support level at $6, there is potential for a recovery. Successfully turning the $6.5 level into support could potentially pull the altcoin’s price back to $7, signaling a recovery. Achieving this would invalidate the current bearish outlook and signal a more optimistic future for Toncoin and its main network asset, TON.
