Toncoin is expected to recover its price towards $6 despite persistent selling pressure, supported by a steady rise in the supply of stablecoins on the TON blockchain, which has surged thirteenfold since April.
Toncoin Faces Selling Pressure but Sees Potential for Growth
On Wednesday, during US trading hours, cryptocurrency markets experienced a bearish trend as Bitcoin neared a drop below $60,000. Like many other #Cryptocurrencies , Toncoin also faced selling pressure, recording a 1.5% intraday loss, with its price nearing the $5 support level. The question remains whether this decline will create an opportunity for stabilization and a reversal, as the TON blockchain ecosystem sees renewed growth in stablecoin supply.
Stablecoin Supply on TON Blockchain Surges 13x
Despite the arrest of Pavel Durov, founder of Telegram, and the legal issues surrounding him, the TON network shows resilience. Crypto analyst Nick Garcia from Messari points out that since April, the stablecoin supply on the TON blockchain has increased thirteenfold. This rise signals renewed interest in the TON ecosystem and its stability despite Durov’s challenges.
The growing supply of stablecoins positively impacts network liquidity and usage, potentially increasing demand for Toncoin, which is used for transaction fees and staking. This could support the price growth of Toncoin.
Rising TVL on the #TONBlockchain
According to DefiLlama, the total value locked (TVL) on the TON blockchain has increased from $317.2 million to $402 million over the past month, reflecting a 26% increase. The rising TVL indicates that more users are locking their assets into TON’s decentralized finance (DeFi) protocols.
However, Nick Garcia cautions investors, noting that the situation around TON may resemble the collapse of FTX, which also faced a sudden downfall.
Toncoin Drops 8% Amid Resistance at the Downward Trendline
In the context of the ongoing Iran-Israel conflict, Toncoin's price sharply dropped from $6.06 to $5.06, representing a 17% decline. This bearish reversal on the daily chart signals continued resistance from sellers at higher price levels. If this pressure persists, Toncoin’s price could further decline to $4.5, with a long-term downtrend potentially driving it toward $3.3.
On the other hand, a bullish breakout above the upper trendline would signal a recovery trend, possibly pushing Toncoin's price back toward $6, with the potential to reach resistance at $7.2.
#TON , #Stablecoins , #tonecoin
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