Toncoin [TON] is currently exhibiting a strong bullish stance for the current cycle. A recent analysis by CryptoCrypto projected optimistic price targets for this period, estimating a peak as high as $19.5. Recent observations of the staking ratio suggest a potential imminent price surge.
There has been a noticeable uptick in social sentiment surrounding TON, indicating growing interest in the cryptocurrency. Moreover, the increasing number of active TON balance addresses highlights a rising organic demand for the digital asset.
Analyzing the Present and March Comparison
In a recent report on CryptoQuant Insights, analyst Joao Wedson drew attention to the correlation between a rising market value and decreasing TON staking levels. Wedson noted that back in March 2024, the volume of TON tokens locked in staking witnessed a notable decline (reflected in the staking TVL ratio, depicted in purple) while prices continued to climb.
This phenomenon often occurs when investors perceive a change in market sentiment across alternative cryptocurrencies and opt to withdraw their funds from staking to engage in trading on exchanges. This movement of tokens creates additional demand for TON, thereby driving up its value.
Locked tokens, being inflexible, are typically redeployed during periods of heightened volatility and profit potential, elucidating the rapid decline in the staking TVL ratio observed last summer.
The analyst further pointed out a potential shift in TON’s price trajectory away from a downward trend. This adjustment may lead to another decline in the staking TVL ratio, potentially sustaining an upward trend in the weeks ahead.
Strong Network Growth Reflects Confidence in Toncoin
Examination by CryptoCrypto revealed a consistent uptrend in daily active addresses and network growth over the past fortnight. During this period, TON’s valuation surged from $5 to $6.
The escalating count of unique addresses participating in daily transactions, alongside the establishment of fresh addresses on the network, reinforces the notion of high demand for Toncoin.
Analyses of the token supply distribution indicated a trend of major holders actively offloading assets in recent months. Accounts holding between 100 and one million TON exhibited a steady decline, signaling selling pressures in the preceding three months.
Conversely, smaller accounts with holdings under 10 Toncoin continued to accumulate more assets. The absence of significant whale accumulation appeared inconsistent with the narrative of robust TON demand.
An additional decrease in the staking TVL ratio could signify a shift towards bullish sentiment. In the upcoming weeks, as prices potentially rise further, more tokens could be withdrawn from staking to capitalize on trading opportunities.