Toncoin is on a similar bullish run to most of the crypto market. It is experiencing notable increases on Thursday amid growing bearish sentiment across the crypto market.
It peaked at $2.90, a few cents from $3. The coin has been on what many will call “a generational run” since the week began. Wednesday was the biggest, as it surged by more than 25%. It also saw notable gains on Tuesday, rising 18%.
A bullish close to the current session will mark TON’s sixth consecutive day of an uptrend. Based on its price at the time of writing, the altcoin is up 89% this week.
Price action over the last three days was some of the biggest runs, enough to spark speculation of a surge to $5. On May 5, REKTKAZ urged investors to buy TON, saying it was about to explode and that he expected it to reach €5- €6. He presented a screenshot to back his claims hours later, noting that the rise toward his target had begun.
There are several reasons why REKTKAZ and other Toncoin proponents are positive about the asset. One of them is the recent improvements in the chain. Over the last three days, Pavel Durov announced some new feats the blockchain achieved.
Pavel Durov Fuels The Runs
On May 4, Telegram’s CEO announced a major change in Toncoin. He stated that within the next three weeks, the messaging app will replace TON Foundation as “the driving force” behind the coin and will become its largest validator.
Aside from this change, he stated that fees on the blockchain have dropped 6x and are almost zero. Prices reacted surging 22%.
The next day, Durov made known another key feature of the “driving force” change. He said it “lets other major players join the validator pool without centralizing the network — with Telegram as the counterbalance.” As a result, every user will compete for a 20% APR, locking more and more TON.
Following the announcement, the total value locked on Tonstakers increased from 76.8 million TON to $82.4 million TON. Prices also surged in response.
Finally, on May 6, Durov stated that the project leads layer-1 blockchains in finality time, presenting a short video to back the claim.
Since Monday, Toncoin has been on the rise following each announcement by the Telegram CEO. However, it appears there are no other events or milestones, as he hasn’t posted anything new.
It remains to be seen if the uptrend will continue. Nonetheless, price action at the time of writing suggests a reduced chance of this happening.
Toncoin Sheds Almost Gains
Toncoin attempted $3 a few hours ago, but faced significant rejections. As a result, it retraced and has almost shed all of its previous gains.
It traded near its opening price as its upward momentum faded. The 4-hour chart shows that most of the losses occurred in the session starting at 8:00 UTC, with a 10% slide. Although it slipped even lower a few hours ago, the current candle shows slight recovery.
The 1-day chart offers little insight into how prices will trend in the coming days. Aside from the current, the relative strength index also suggests that the uptrend is nearing its peak. It broke above 70 on Monday and is trending at 91 at the time of writing. With TON being overbought, profit-taking may follow. RSI is the first indicator that says no to a climb to $5.
Nonetheless, the bearish action may have started as some investors unlocked some units. Shortly after TVL peaked at 82.4 million, it dropped to 74.2 million. On TON, TVL also significantly dropped. Investors may flood exchanges with assets in the coming days, resulting in a massive decline. It could also hinder and further rise.
Additionally, the altcoin is trading above the bollinger bands. It broke out from the bands on Monday and has since trended above the metric. If the current selling pressure continues, the asset will retrace back within the indicator.
Per the metric, TON will retest $2 in the coming days. If the bulls fail to defend it, a drop to $1.50 will follow.
However, all hope for an uptrend is not lost. The moving average convergence divergence remains positive, maintaining its upward trajectory amid growing selling pressure. The 1-week chart offers other factors that could translate to further increases for the altcoin.
Toncoin Flipped Its Pivot Point
On a weekly scale, the current week marks the third consecutive week with significant increases. Toncoin is also experiencing its best session. Over the last four days, it has edged closer to its pivot point, flipping it on Thursday.
Since breaking the mark a few hours ago, it has been declining. However, it remains to be seen whether the current selling pressure will permanently alter the uptrend. Nonetheless, if the bulls restart the buyback, the altcoin will attempt to break the mark again. Breaking it will see the coin edge closer to the first pivot resistance at $4.79.
Additionally, after several weeks of trending closely together, the 12- and 26-EMA gaps are widening following the recent uptrend. The moving average convergence divergence also maintains its upward momentum amid the sudden shift in sentiment.
Nonetheless, previous price action suggests that the altcoin’s climb to $5 hinges on a single critical resistance level: $3.80. It is worth noting that Toncoin’s recent decline followed a failed attempt to break above $2.90.
If it flips the closet resistance, there are no stronger levels until $3.80. Flipping the barrier will see the coin retest R1 at $4.79.
In summary, Toncoin’s recent uptrend is fueled by fundamentals. However, the fuel may be running out, increasing the risk of a massive correction. Onchain and indicators on the 1-day agree that the uptrend has hit a brick wall.
Conversely, the 1-week chart offers a tiny glimmer of hope.
