Telegram launched its own cryptocurrency a few years ago, which is now experiencing a robust uptrend. This movement is driven by the platform's intention to go public.
Investors are anticipating that this IPO will positively influence the coin's value, which seems to be the case at the moment. However, it raises the question of whether we have reached the peak of these increases or if further growth is expected for TON.
TON Trading Volume Hits Record High
The daily trading volume of TON has recently hit new highs, with a notable peak of $314 million. This surpasses the previous record of $295 million, set just two weeks earlier on February 28.
Analysis from Santiment indicates a significant correlation between TON's trading volume and its price development. Should the trading volume decrease, it suggests that caution may be advisable.
This chart demonstrates that an increase in trading volume often coincides with a rise in the TON price, indicating growing momentum for the token. This trend is particularly remarkable as it points to a positive future outlook for TON, suggesting that the token is gaining popularity and value within the crypto market.
The Majority in Profit
Analysis of TON holders' profit and loss positions reveals a striking picture: over 95% of holders are in a virtual profit situation, marking the highest level of profitability since 2021. This is not entirely surprising, given the coin is currently moving around its record high.
The metric used calculates the average purchase price of all TON tokens by addresses. When the current market price is higher than this average purchase price for an address, it is considered “in the money,” meaning it is making a profit on paper. Conversely, addresses for which the current market price is below their purchase price are seen as “out of the money,” indicating unrealized losses.
While the high percentage of TON holders currently in profit may raise concerns about a potential selling wave, a look at history offers a more nuanced view. In the past, a large number of profitable holders did not always lead to a sustained price decline. Moreover, TON has significant growth potential; the coin needs to rise another 22.10% to reach its previous record high. This suggests that the market may still be in an accumulation phase, with investors holding their positions in anticipation of further price increases.
However, it is important to remain alert to potential selling pressure. The recent price increase of 37% has undoubtedly placed many holders in a profitable position, prompting some to consider realizing their gains by selling a portion of their holdings. Monitoring this potential selling pressure closely is crucial, especially if it coincides with signs of a waning uptrend, as identified by technical analysis.
TON Price Forecast
The 4-hour chart of TON shows several bullish signals, with a key indicator being the recent crossing of the short-term Exponential Moving Averages (EMAs) above the long-term EMAs. This crossing is a well-known technical indicator signifying an upward trend.
EMAs are technical analysis tools used to smooth out price movements and identify trends, making them crucial for analyzing market movements.
The bullish sentiment surrounding TON is further bolstered by the price currently trading above all EMA lines on the chart, indicating a strong upward trend.
It's crucial to pay attention to potential support levels in case the TON price encounters resistance. Historical data indicates that TON has found support around the $2.60 and $2.38 levels. A fall below these zones could indicate temporary market weakness and potentially usher in a further drop to $2.10.
Conversely, positive news could be the driving force behind continued price increases for TON. A recent example is the news shared on platform X, announcing that Telegram will reward channel owners with Toncoin: “The company (@telegram) will issue rewards in Toncoin through the TON Blockchain. Channel owners will receive 50% of the revenue the company earns from displaying ads in their channels,” according to the announcement. Such developments could further stimulate demand for TON.
Should the current upward trend continue, there is potential for a significant price increase for TON. A breakthrough above the $4 mark could lead to price levels not seen since 2021, paving the way for possibly even higher values.
