Toncoin jumps nearly 40% defying the bearish market – what now?
- The recent rally allowed TON to enter the list of the top 10 cryptos.
- The RSI was in the overbought zone, which can cause trouble.
Toncoin [TON] has decoupled from the market as its price has rallied substantially over the last few days. In fact, the surge also allowed the coin to enter the list of the top 10 cryptos by market capitalization. Considering the volatile nature of the crypto market, is it likely for TON to remain in the top 10 club for long?
Realistic or not, here’s TON market cap in BTC‘s terms
Toncoin investors are rejoicing
Over the last few days, TON has surprised the crypto market as its price skyrocketed. The coin’s value surged by more than 38% in the last seven days. In fact, in the last 24 hours alone, its value went up by over 14%.
At the time of writing, TON was trading at $2.41 with a market cap of over $8.2 billion, making it the 9th largest crypto.
The bull rally began after the news of a new partnership broke. As reported earlier, messaging app Telegram announced its official endorsement of the TON network, positioning it as the preferred blockchain for Web3 infrastructure. The user interface of Telegram’s app will easily integrate with TON.
As the news circulated, the coin’s price action turned bullish. This was surprising considering the current bearish market in which top coins like Bitcoin [BTC] and Ethereum [ETH] were not performing well.
Will Toncoin’s bull rally continue?
A look at TON’s on-chain metrics revealed quite a few positive signals. For instance, the coin’s trading volume surged along with its price, which is a typical bull signal.
Its daily active addresses also shot up considerably, suggesting more activity. LunarCrush’s data pointed out yet another bullish metric. TON’s Altrank and Galaxy Score both improved, increasing the chances of a continued uptrend in the coming days.
As per Coinglass, TON’s open interest also rose during the price uptick, suggesting that the ongoing price trend might continue in the coming days. Not only metrics, but a few market indicators were also supporting the buyers.
Read Toncoin’s [TON] Price Prediction 2023-24
For example, the MACD’s data revealed that the bulls were controlling the market. The Bollinger Bands pointed out that TON’s price was in a highly volatile zone, further increasing the chances of a continued northbound price movement.
However, the Relative Strength Index (RSI) was concerning as it was in the overbought zone. This can increase sell pressure on TON. Whether TON manages to sustain its uptrend will be an interesting event to watch.