TON Prepares For A 40% Price Rally, Here Is Why

As of August 19, Toncoin (TON) is among the top-performing cryptocurrencies, having increased by almost 9% in the previous day compared to the 3% decrease in the cryptocurrency market during the same period.

The price action of TON over the previous few weeks is consistent with a traditional Bump-and-Run Reversal (BARR) pattern. A lead-in phase in this setup culminates in a sudden decline (bump), which is followed by a rebound and ultimate breakout (run).

The BARR Reversal pattern is frequently regarded as a signpost for substantial upward momentum, which TON has been exhibiting since mid-August 2024.

Technical Analysis: Bullish BARR Breakout Verifies On August 18

TON's price broke above the declining trendline that had previously stopped its attempts at recovery, ushering in the "Run" phase of the BARR pattern. An increase in trading volume coincided with this breakout, supporting the bullish argument.

The daily chart shows that TON is trading above its exponential moving averages (EMAs) for the 50-day (red) and 200-day (blue) periods. These EMAs have begun to slope upward, indicating the beginning of a bullish momentum. Even though conditions are temporarily overbought, the relative strength index (RSI) is still comfortably above the neutral 50 level, suggesting that buying pressure is still present.

Given the peak of the bump phase of the BARR pattern, TON might revisit the $9.50 level if this momentum continues, which would represent a 40% increase from its current price. The price target is in line with the resistance observed in the first part of July 2024, which is a level worth keeping an eye on.

Key Players: Injective Integration and Binance Listing

Two significant developments have strengthened the adoption of TON from a fundamental standpoint.

Toncoin's accessibility to a wider range of investors and increased liquidity were made possible by Binance listing it on August 15, 2024.

In the meantime, the parent ledger of Toncoin, the TON blockchain, announced on August 14, 2024, that the decentralized finance protocol Injective had integrated. Through this integration, TON-based assets can be used in Injective's decentralized applications (dApps) and other parts of its ecosystem.

Source: X

Analysis of the On-Chain: TON Supply Distribution Points to Further Accumulation

On-chain data adds more credence to the optimistic TON outlook. The percentage of TON held by addresses with 100,000 to 1,000,000 coins (black line) as of August 19, 2024, has been gradually decreasing, suggesting that tokens may be redistributed from large holders (whales) to smaller holders. This pattern frequently implies that smaller investors are still making gains while larger holders are taking profits.

In the meantime, there has been a steady rise in the proportion of TON held by addresses with 10,000 to 100,000 coins (green line), indicating a high level of interest in purchasing among mid-sized investors. Because it indicates a growing base of holders willing to tolerate higher prices, this change in the distribution of supply frequently occurs before bullish price action.