Toncoin (TON) is the native cryptocurrency of the Open Network (TON) blockchain, initially developed by the team that created Telegram. It recently showed green momentum with a 9% return over 90 days, which leaves people talking about a rally.
Toncoin, one of the cryptocurrencies known for its blockchain technology, has recently gained momentum as it seems to recover from a relatively low period of activity. Since its 90-day percent return is now positive, investor sentiment appears to be turning around with speculations that a rally is near. Despite recent bearish price movements, analysts still believe in Toncoin’s potential and predict future gains as market signals are positive.
Toncoin’s Positive Momentum: What It Means for Investors
Toncoin has lately benefited from more investor confidence than ever, especially with its positive 9% return for the last 90 days. Though smaller in relative size compared to previous rallies that were explosive, many see this as an inflection point. Based on historical data, changes that are similar to this in the metric of the 90-day return have often been before upward price movements for Toncoin. However, that still leaves room for cautiousness; the current returns aren’t likely to bring forth the results of the former 200% return.
Key Insights from CryptoQuant Analyst Darkfost
1. 90-Day Percent Return Goes Positive: The Last 9 percent positive results indicate that things in the market must be looking great. Well, according to analysts that alone does not represent a grand rally.
2. Historical Perspective: At the time when Toncoin had its last significant rally, the 90-day return was more than 200%. This implies that under the right market conditions, the coin can have strong momentum.
3. Investor Behavior: A positive 90-day return indicates improved investor confidence, but it is too early to forecast whether Toncoin will be able to repeat its previous explosive price growth.
TON Market Performance: Recent Setbacks and Bullish Outlook
Although the 90-day return has been great, Toncoin recently traded on the bearish side. From last week, the crypto had dropped close to 10% and is selling at $6.27 from its highest level of selling at $8.25. The same trend affects its market cap. Today, its market cap has reduced to $15.9 billion, having at one time risen to above $17 billion.
- Price Drop: Toncoin currently trades at a level 24.2% below the all-time high, while short-term bearishness is emerging.
- Volume reduction: On December 10, the daily trade volume exceeded $1 billion and was recorded to be $402.8 million on today’s trading day, an indicator of how the correction in the present market looks like.
According to Darkfost and more analysts, this is merely a set-up for a breakout.
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Symmetrical Triangle, Upside and Potential Breakout
Recently, an analysis by The Moon Show identified that Toncoin was in the process of forming a symmetrical triangle on the 1-hour chart. Such could mean that a breakout in the upward direction would come out of this situation. Breaking out above the triangle’s resistance should take the price higher toward $7.55.
Conclusion: Toncoin shows fresh positive momentum as the 90-day return turns positive for the first time in months. The recent disappointments in price and market cap do not rule out emerging market confidence and technical indicators that may soon bring a rally.
Still, at the current time, 9% is a very low return and, of course, is too early to confirm that Toncoin will repeat its earlier explosive growth. The best signal for a future rise in price is the chart, which is a symmetrical triangle and can now potentially break to the upside.
Investors and traders should still keep an eye on the price actions of Toncoin in the coming weeks to see if it maintains continuous bullish momentum or experiences retracements. Once Toncoin finally breaks above its resistance level, this may mean that a new rally has started, with massive gains for investors. On the other hand, any drop below key support levels might mean further consolidation or correction before the next upward move.
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