Toncoin [TON] reaches new milestone with 1 billion transactions on blockchain – Is a bull run on the horizon?

TON Coin has experienced a decline in value, dropping by 28% to $4.884 since late August, attributed to controversies surrounding Telegram and Bitcoin’s downturn.

Despite these challenges, the recent milestone of surpassing 1 billion transactions on the TON blockchain prevented the coin from testing the $4.5 support level, which could have potentially led to a significant drop to $2.06 as highlighted by CryptoCrypto.

Following this pullback, TON has rallied close to the $9 resistance level.

With TON nearing the $4.5 mark once again, CryptoCrypto delves into whether the bulls can prevent a repeat of the February decline or if Bitcoin’s influence will steer TON towards a bearish trajectory.

Impact of BTC Volatility on TON’s Rebound

Given the broader market instability, particularly with Bitcoin falling below the $57 support level, bullish investors may face challenges in facilitating a TON rebound.

The significant milestone of 1.02 billion transactions on the TON blockchain, with half occurring in the last three months, demonstrates a surge in user activity.

Despite this positive development, the daily buying volume has not met bullish expectations.

Historically, there have been instances of bullish rallies for TON, notably in late February when it surged close to $9 by mid-April, accompanied by OBV climbing from 80K to 216K and RSI peaking at 80, indicating an overbought condition.

However, disruptions caused by Bitcoin’s movements have impacted TON’s trajectory, despite efforts from bulls supported by robust volume and transaction data on the TON blockchain.

Market caution induced by BTC-induced volatility, as evidenced by an oversold RSI, has led to reduced capital inflow. The question now arises if a rebound is plausible given these circumstances.

Significant Whale Activity in Recent Times

Interestingly, large holders control a majority of TON holdings, accounting for 68.88% of total holdings valued at approximately $3.24 billion.

The remaining holdings are divided between retail and institutional investors, with the latter holding 26.53% of the large TON positions.

While major holders have been consolidating their holdings for the past five months, a notable surge of activity was witnessed on the TON blockchain towards the end of August.

On the 29th of August, significant TON deposits by large holders onto exchanges led to a price drop of over 2% the following day.

These actions coincided with Bitcoin’s downward swing and the anticipated volatility in September, prompting large holders to exit amidst the market uncertainty.

If market instability persists, bearish trends could dominate, potentially pushing TON below the critical $4.5 support level. What are the prevailing odds in this scenario?

TON Blockchain Instability Favors Short Positions

Analysis by CryptoCrypto indicates that despite the record-breaking transactions on the TON blockchain, continued decline could trigger approximately $332K in long liquidations once TON tests the $4.5 support threshold.

In conclusion, sustained market volatility presents challenges to TON’s recovery. Success for bulls could see TON soar towards the $5.2 limit, while failure might lead to a retreat to the $4.2 range.

Currently, the odds appear to favor short position holders as uncertainties loom over the market.