April 19, 2024
Toncoin (TON) price skyrockets to 11-month high after Telegram launches ‘Giveaways
Latest Cryptocurrency News

Toncoin (TON) Price Surges to 11-Month High Following Telegram’s ‘Giveaways’ Launch

The price of Toncoin (TON) has surged to an 11-month high, propelled by positive developments in the market, including the launch of the “Giveaways” feature on Telegram. TON now holds the 10th position among cryptocurrencies, with a market capitalization exceeding $9 billion, marking an all-time high.

Telegram CEO Pavel Durov made a noteworthy move by purchasing $200,000 worth of TON tokens to provide Telegram Premium subscriptions for 10,000 users through the Giveaways feature. This action contributed to a 19.5% price increase for TON and increased trading volumes, reflecting robust buying interest. As of November 8, the cryptocurrency had reached $2.71, its highest level in nearly a year.

Toncoin’s recent collaboration with Blockchain.com and its approval for operation in the Dubai International Financial Centre free trade zone has further boosted trader confidence and driven positive price reactions.

However, a technical analysis of the Toncoin price chart suggests it may be overvalued. The daily relative strength index (RSI) for TON has entered the overbought region with an RSI value above 70. Past instances of RSI entering overbought zones have often led to significant price corrections. Additionally, the formidable horizontal resistance range of $2.60 to $2.70 has proven to be a challenging barrier for Toncoin, repeatedly thwarting its attempts to rise since December 2022. This reinforces the possibility of a bearish reversal in the coming days or weeks.

In a bearish scenario unfolding, the key support level to monitor is at the Q1/2023 support line, situated near $2.22, representing a 17.5% decline from the current price. This support line aligns closely with Toncoin’s multi-month ascending trendline and its 50-day exponential moving average (50-day EMA).

On the other hand, a decisive breakthrough above the $2.60 to $2.70 resistance range would position TON to target $2.92 as its next upward objective.

Image by freepik

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