Toncoin (TON), the native cryptocurrency of the TON network, has seen a remarkable price increase in the past week, defying the bearish market sentiment and climbing to the top 10 by market capitalization. The main drivers behind this rally are the official endorsement of the TON network by Telegram, the popular messaging app, and the technical breakout from a long-term resistance line.
Toncoin’s Rise to Stardom Continues
Telegram, which has over 800 million users, announced on September 15 that it has integrated the TON wallet into its app, allowing users to easily access and use the TON network and its decentralized applications (DApps) and decentralized finance (DeFi) services.
This partnership has boosted the exposure and credibility of TON as a leading blockchain infrastructure provider for Web3. Following the announcement, the TON price surged from $1.80 to $2.54 in two days, breaking out from a descending resistance line that had been in place since December 2022, when TON reached its all-time high of $2.97.
The breakout was confirmed by a high volume and a bullish RSI movement above 70. The TON price is currently trading at $2.34, according to CoinGecko, after a slight correction of 2.6% in the past 24 hours. However, the open interest and daily active addresses have increased significantly, indicating that the bullish momentum may continue in the near future.
The technical analysis suggests that TON is likely in the fifth and final wave of a five-wave upward movement, according to the Elliott Wave theory. The target for the top of this wave is $2.77, which is close to the December 2022 high of $2.97. If TON manages to surpass this level, it could aim for higher resistance levels at $2.74 and $3.70.
However, there are also some signs of caution, as the daily RSI has generated a bearish divergence, which could signal a local or absolute top. Moreover, after the fifth wave is completed, a significant correction is expected, which could bring TON back to the support levels at $1.77-$1.97, where it could retest the former resistance line.