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— Ibrahim Ajibade

Toncoin (TON) Experiences 42% Surge as Bull Traders Capitalize on the Dip

Toncoin's price surged by 6.5% on Friday, August 9, reaching a weekly high of $6.81. This rally comes as Toncoin outperformed other major assets, which experienced declines.

The price of Toncoin this week has been notably volatile. It began the week on a downturn, hitting a three-month low of $4.78 on August 5 due to widespread bearish sentiment in the market.

However, Toncoin quickly rebounded, driven by several bullish factors that boosted its value.

A major factor in Toncoin’s rally was a substantial influx of capital into blockchain and digital asset-focused exchange-traded funds (ETFs). This surge in investment indicated increasing institutional interest, which supported cryptocurrencies like Toncoin. Additionally, the recent $125 million fine imposed on Ripple by the U.S. Securities and Exchange Commission (SEC) temporarily shifted investor sentiment, leading some traders to reallocate funds into other altcoins, including Toncoin.

Another key driver behind TON’s rally was Russia's recent legalization of cryptocurrency mining. This move had a significant impact on Toncoin due to its strong connections with the Russian market. The regulatory shift not only provided a boost but also bolstered investor confidence in Toncoin's continued adoption and use in the region.

As of August 9, Toncoin had experienced an impressive 42% surge from its August 5 low, surpassing the $6.80 resistance level with an additional 6.5% gain. This breakout enabled Toncoin to outperform major cryptocurrencies like Ethereum and Shiba Inu, which encountered resistance and subsequently retreated on the same day.

Toncoin Network Activity Soared During Market Downturn

Despite significant challenges in the broader cryptocurrency market, Toncoin's network activity showed notable resilience. The number of Daily Active Addresses (DAA) on the Toncoin blockchain increased significantly, rising from 682,680 on August 4 to 846,820 on August 8.

The Daily Active Addresses metric, which measures the number of unique addresses involved in transactions each day, is a key indicator of network health and user engagement.

This increase in DAA suggests that Toncoin's user base remained active despite the market downturn, possibly driven by recent regulatory changes and growing institutional interest.

The consistent network activity likely contributed to the strong breakout Toncoin experienced on August 9. This uptick in engagement could signal that the cryptocurrency’s fundamentals are solid, potentially leading to further upward price movement in the near future.

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TON Price Outlook: Expecting Additional Consolidation Before Breaking $7

Toncoin's recent surge has certainly attracted trader interest, but a period of consolidation may be needed before another major breakout. The Donchian Channels indicator shows that TON is trading near the upper boundary, with support at around $6.05 and resistance at $7.31.

Given the current bullish trend and market dynamics, TON is expected to consolidate within this range for the short term.

If TON manages to surpass the $6.81 resistance level, it could potentially advance towards $7.50 or beyond. Conversely, if TON drops below the $6.05 support level, a decline to around $5.50 could occur.

Overall, the technical indicators are optimistic, suggesting that further gains are possible as long as TON maintains its upward momentum. Traders should monitor the $6.81 resistance level closely, as a breakout above this threshold could signal the beginning of the next significant price increase.