Toncoin Soars to Nearly Year-High Amid Telegram's 'Giveaways' Launch & CEO's Investment
Summary:
Toncoin (TON) has experienced a near year-high surge, reaching a market cap of over $9 billion, driven by recent optimistic updates, including the introduction of the "Giveaways" feature on Telegram. Pavel Durov, Telegram CEO, bought $200K in TON tokens and used them within the app. Despite recent gains, however, the TON's price is considered overvalued technically, signalling a potential downturn in the near future.
In a surge resulting from a series of encouraging market developments, notably including the recent roll-out of "Giveaways" on Telegram, the price of Toncoin (TON) has soared to an almost year-high. Consequently, TON has secured a spot in the top ten cryptocurrencies with an all-time peak market valuation surpassing $9 billion. Telegram CEO, Pavel Durov, invested $200,000 in TON tokens on November 6, coinciding with the announcement of the Giveaways program, a new feature allowing channel owners to randomly award gifts to their followers.
Following this, Durov utilized a portion of his TON tokens to finance Telegram Premium subscriptions for 10,000 users - an unprecedented case of in-app usage of the Giveaways feature for payment purposes. A 19.5% rally in TON's price was witnessed post-Giveaways introduction, abetted by a surge in trading activity, implying intense buying interest. By November 8, TON peaked at $2.71, marking its highest financial mark in nearly a year.
Telegram, the largest supporter of Toncoin, has embraced a self-custodial wallet, TON Space, on its platform, significantly improving TON's prospects for wider adoption among the platform's 700 million monthly users. This combined with recent positive triggers such as the Blockchain.com collaboration and the approval granted by Dubai International Financial Centre free trade zone, has further incentivized traders.
However, while the Toncoin price chart suggests an overvaluation from a technical perspective - exhibited by TON's daily relative strength index surpassing 70, an overbought territory - it's important to note that the multi-month horizontal resistance range of TON, spanning $2.60-2.70, will present formidable resistance. In the past, this zone has halted Toncoin's various bullish attempts since December 2022, signifying an increased likelihood of a bearish downturn in the ensuing days or weeks.
In the event of a bearish turn, the follower level to monitor is Q1/2023 support line, which hovers around $2.22, marking a 17.5% reduction from the current price. Conversely, if TON manages to breach the $2.60-2.70 threshold, it could then target $2.92 as its subsequent upside aspiration. As with all investments, it is advised that readers carefully consider potential risks and conduct thorough research prior to making any financial decision.
Published At
11/8/2023 12:35:00 PM
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