Will Toncoin Breakout Result In Further Uptrend?

Toncoin broke above its two-week high of $3.20 a few hours ago, following a slight decline below $3. It continued upward to its two-month high at $3.60 and peaked at $3.69.

The surge comes after the coin grappled with notable selling pressure, causing it to range for four days. TON’s latest hike is no surprise as it shows massive support for Telegram. Investors poured fresh liquidity into the asset on Wednesday as it saw a shift in fundamentals.

The messaging app announced plans to raise $1.5 billion through bonds. It will use the funds from the issuance to repay the debt it incurred in 2021. The latest move marks a turn from its previous policy that saw it buy back approximately $400 million of those bonds using cash.

Telegram sealed its place as one of the most crypto-friendly apps after pioneering the tap-to-earn era. This explains the reason for the reaction to TON when it made the announcement.

Data from CryptocurrenciestoWatch shows that the altcoin saw a massive increase in trading volume. Buying and selling quadrupled in the last 24 hours as buying pressure surged. 

Trading actions in the derivatives market surged as investors rushed to capitalize on the latest swing. Short position holders lost over $2 million. However, the long position holders were the most liquidated in the last 12 hours. They lost $2.48 million, bringing total liquidation to $4.48 million.

A closer look at the chart shows why the bulls were the top losers. The coin experienced massive selling congestion at its peak, resulting in retracements. The asset trades at $3.44 at the time of writing, 6% lower than its high. Traders opened fresh positions at $3.60, anticipating further increases. 

The expectations of a flip of the $3.80 resistance remain high amid the slight trend reversal.

Will Toncoin Break $4.55?

X user and trader Carl Moon said, “$TON is breaking out to the upside! The next stop could be the horizontal resistance at $4,55.” The post gained notable traction, with most agreeing that the highlighted price mark may be the next stop. 

Others advocate for a cautious approach to the latest spike, arguing that it lacks substantial support beyond the news. Moon posted a chart showing that the altcoin broke out of a triangle, considered a bullish action, which may result in further increases.

The moving average convergence divergence shows that the 12-day EMA intercepted the 26-day EMA a few hours ago. The bullish divergence may indicate further price increases ahead. RSI agrees with this prediction, as it currently stands at 60, indicating room for further surge.

However, readings from bollinger bands suggest that the asset may see further retracement in the coming days. Toncoin broke above the bands a few hours ago, indicating that the uptick is nearing its end. Further retracement will see the altcoin test the $3.20 support. It risks dipping to $3 if the bulls fail to defend the preceding mark. 

Nonetheless, TON’s surge reflected in other assets in its ecosystem. Notcoin opened Wednesday at $0.0027 and surged after a slight decline to $0.0026. The memecoin broke above $0.0030, reaching a peak of $0.0032. 

Indicators are shifting bullish, with the MACD initiating a positive convergence. The asset may be gearing for further increases. 

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