Toncoin (TON), the native currency of Telegram’s Open Network and its Telegram connection, has performed better than Bitcoin (BTC) despite recent market volatility. Bitcoin has fallen by 3% during the past seven days, but TON is up by more than 20%. In the world of cryptocurrency, this sudden outperformance has caused a wild frenzy. Will TON continue to rise, or will this be a brief blip on the radar?
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Toncoin engine powered by social buzz
The recent success of TON appears to be largely due to a spike in social media usage. Social volume (a measure that measures the number of discussions and mentions made on social media platforms such as Twitter or Telegram) has increased by 20% in comparison to last week. The price of TON could rise as a result.
📉 You can also find out more about #bearish Sentiment high #crypto Markets have been continuing to decline over the past seven days. The market is down -3.6% and the volume has fallen -27% compared to the previous week. $TON, $KAS, $RUNE” $AKT The recent rally in the stock market has kept investors hopeful. https://t.co/E6b2DtmAxI pic.twitter.com/VoiCJk1ymh
— Santiment (@santimentfeed) May 13, 2024
Investor Sentiment: A Mixed Bag For TON
But a closer examination reveals an important wrinkle to this optimism. While TON’s overall outlook has always been positive, the sentiment has recently dipped in to negative territory. It could indicate a growing level of investor anxiety, with some investors concerned about the future of the price rise.
Accumulation Signals: Are Investors Betting Big On Toncoin?
The other metrics, however, point to potential bullishness in the long term. The average dollar age of tokens, which is an indication of the length of time they have been held for, has steadily increased. The increase in the mean dollar invested age suggests that token holders are keeping their TONs, possibly with an eye to future gains.
The dormant exchange, which represents tokens not used in some time, is also low. The previous surge coincided with the price peak. However, this current stabilization could be due to a strategic accumulation of tokens by investors.
Toncoin: Technical Analysis, Eyes on the Prize
Technical analysts who use historical price data and charts to forecast future trends are cautiously positive about TON. Fibonacci Retracement Levels, a popular tool in technical analysis, suggests that recent downtrends may be coming to an end. It could be the beginning of a new trend. TON Investors can make money by gaining momentum towards the $10 target.
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Marathon, not a Sprint
It’s important to keep in mind that despite the positive buzz and recent rise of TON on the social media, the crypto market remains volatile.
The uptrend in TON may be just the start of a longer-term rise, fueled as it is by the growing Telegram ecosystem and the increasing adoption. It’s possible, however, that the current uptrend for TON is only a temporary rally followed by a corrective correction.
Chart from TradingView, with image by Medjan
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Source: www.newsbtc.com