Following a period where Toncoin’s [TON] value almost experienced a double-digit decline, its bullish investors finally took charge. Interestingly, amidst the volatile price movements, the widespread adoption of the coin significantly increased, leading to speculation on whether this uptrend will continue to drive the price up.
Delving into the Toncoin ecosystem
An insightful tweet from prominent crypto analyst IT Tech shed light on key developments within the Toncoin ecosystem. The tweet highlighted a notable surge in Toncoin’s daily active addresses, which rose to 3.8 million by late September from 2.2 million in August.
This significant increase pointed towards a substantial rise in TON’s utility and acceptance on a global scale.
Another significant development focused on whales. The tweet mentioned,
“Whale concentration within the TON ecosystem is remarkably high, with GOMINING and JETTON exhibiting 97% concentration. The dominance of major holders could potentially influence market dynamics, impacting smaller investors and overall market liquidity.”
Additionally, despite market fluctuations, Toncoin’s market cap remained stable at $13.4 billion as of late September. This stability highlighted investor trust and Toncoin’s robust standing within the ecosystem, providing a sense of assurance amidst market volatility.
Can these factors trigger a bullish trend for TON?
Even though TON faced a price decrease of over 9% last week, the past 24 hours favored investors as Toncoin observed a price increase of more than 1.8%. Currently trading at $5.42, investors anticipated whether rising adoption and the aforementioned factors could uphold this bullish run.
Consequently, CryptoCrypto intended to scrutinize the token’s on-chain data to determine if the growing adoption and other mentioned aspects were adequate to sustain this bullish momentum.
Based on our analysis of Santiment’s data, Toncoin’s weighted sentiment remained positive for the majority of last week, indicating a prevailing bullish sentiment. The token also exhibited high social dominance, reflecting its popularity in the crypto sphere.
Furthermore, TON’s supply on exchanges witnessed a significant decrease, signifying investors’ anticipation of a prolonged price surge in the near future.
Our review of TON’s daily chart provided insights into what market indicators implied about a sustained bullish run.
According to our assessment, TON’s price touched the lower Bollinger Bands limit, often a precursor to an upward rally. If this materializes, TON may initially target $6.8.
However, in a scenario where bearish sentiment prevails, the token’s price could potentially decline to $4.4 on the charts.