The Toncoin project, which initially started with Telegram support but later hid its connection due to editorial pressure, is back in the spotlight. Although the project is still directly supported by Telegram, the management had denied it in the past. Setting aside this contradiction, the increase in the price of TON during the challenging bear market has made investors very happy.
The price has increased by over 85% and TON addresses have experienced a 700% increase according to IntoTheBlock data. This reflects the contribution of the excessive demand in the network to the price. At the time of writing, the Telegram-supported cryptocurrency is trading at $2.54. Weekly gains have climbed to 38%. Current data shows that TON buyers still dominate the market.
Since the RSI has been in the overbought zone for a while, a short-term pullback would not be surprising. The inflated RSI is considered a strong bearish signal, especially in the midst of a bear market, as the demand cannot sustain its strength for long. The CMF data also indicates a downward trend. The MFI shows that the momentum cannot be sustained. Taking all these into consideration in the general framework, we may see a decline, especially considering the upcoming Fed meeting in the coming hours.
As long as the TON price remains in the $2.49 range, it can target a peak above the March 17 period. However, current data and the potential for sentiment in the overall market to turn negative indicate that a drop to the $2.25 and $2 range is possible. If these levels cannot be maintained, selling pressure may continue down to $1.6. The price, which has increased by 123% from its previous peak until July 30, may now face strong profit-taking.
In the weekly chart, we can see that the price, which failed to hold the range between $2.66 and $2.89, has started to move in the opposite direction. In the weekly chart, the $1.95 range stands out as an important support level. If the expected $23,500 drop in the price of BTC occurs, the TON Coin price may also drop to $1.5.
However, in the opposite scenario, if the Fed announcements are favorable for the market, if it is announced that the MtGox sales are postponed to 2024, and if BTC targets the $28,800 range again, the TON Coin price may reach $3.