Toncoin Price Approaches Record High Amid Positive Signs, But Risks Persist
Toncoin has emerged as one of the top performers this year among the top 20 cryptocurrencies in terms of market capitalization. Since January 2024, TON prices have surged from $2 to a daily high of nearly $8.1 on July 2, representing a remarkable increase of 310%.
Notably, the Toncoin price is now very close to reaching its all-time high of $8.24, which was set just two weeks ago.
Analyzing the charts and considering other bullish indicators, it is evident that there has been a significant increase in wallets holding between 100 and 1,000 TON. This suggests a surge in retail investor interest and a shift from larger holders who have been reducing their positions. This change in ownership indicates a democratization of TON ownership, which is a positive sign for future growth.
The recent approval of Toncoin for trading on local exchanges in Kazakhstan by the Astana Financial Services Authority (AFSA) has likely played a role in the token’s distribution. This approval came after a thorough audit confirmed that Toncoin meets the stringent listing criteria set by the financial regulator. With this approval, Toncoin joins an exclusive group of 107 digital assets approved in Kazakhstan, including prominent names like Bitcoin, Ethereum, Polygon, and Avalanche.
Toncoin’s market position has also strengthened, surpassing Dogecoin in terms of market capitalization. Previously ranked 9th on CoinMarketCap, TON has now claimed the 8th spot with a market cap of $19.75 billion, surpassing Dogecoin’s $17.94 billion.
Institutional interest has further fueled Toncoin’s prospects, with Pantera Capital increasing its investment in the token. This has led to increased demand, and the ongoing investment round has attracted participants with a minimum stake of $250,000.
However, despite these positive developments, there are potential risks for the Toncoin price. The recent rally may attract profit-taking bears, and there is a possibility of a bearish technical pattern called the “Rising Wedge” forming. This pattern indicates a potential reversal in the current upward trend. It is characterized by converging upward-sloping lines, with the resistance line ascending at a gentler slope than the support line.
The rising wedge pattern suggests weakening momentum, and it often leads to a downward breakout. If the Toncoin price breaks below the support line of this pattern, it could experience a significant drop to around $4.7, which is a decrease of over 41% from its current levels.
As always, it is important for traders and investors to consider these potential risks and monitor the market closely to make informed decisions.
