Toncoin (TON) and The Open Network blockchain are once again in the limelight, this time due to positive developments unrelated to outages or price drops.
On Sunday, September 15, the value of USDT stablecoin issued on TON has exceeded $1 billion for the first time. Although Toncoin’s price has not yet reacted to this milestone, the increased liquidity has the potential to act as a catalyst for the cryptocurrency to achieve new heights. This analysis delves into how this liquidity surge could enhance TON’s market performance.
Toncoin Draws Increased Liquidity
Per Token Terminal, the USDT issued by Tether on TON was below $800 million on August 31. The current increase to $1.03 billion indicates rising interest in Toncoin.
Findings from BeInCrypto suggest that this capital influx into the ecosystem could offer a boost to the Telegram-native cryptocurrency. An increase in stablecoin volume may lead to enhanced user engagement on TON, and as user activity increases, the demand for Toncoin could follow suit, potentially driving up its price.
This achievement might even pave the way for the altcoin to reclaim its all-time high of $8.24.
Read more: 10 Best Altcoin Exchanges In 2024
At present, Toncoin is valued at $5.55, a decline of 32% from its peak in June. However, on-chain data from Santiment indicates a significant increase in the Mean Dollar Invested Age (MDIA), a metric that tracks the average age of each dollar invested in a cryptocurrency.
An increasing MDIA is often an indicator that previously dormant addresses are becoming active and moving substantial amounts, typically benefiting short-term price growth. Conversely, the recent rise in MDIA suggests that investments are becoming more stagnant, which could limit Toncoin’s short-term price appreciation. Nevertheless, Toncoin holds promising potential for a notable rally in the mid-term.
TON Price Outlook: Time to Challenge June Peaks
On the daily chart, BeInCrypto identified a robust support level for Toncoin at $5.20, which has helped elevate the token’s price above the 20-day Exponential Moving Average (EMA). The EMA is indicative of trend direction, and when prices rise above it, it signals a bullish trend. Historically, this configuration played a crucial role in Toncoin’s surge above $8 in June.
At present, Toncoin is encountering resistance at $6, a significant supply zone. However, if demand continues to grow, TON could surpass this barrier and potentially soar to $8.32 by the end of this year.
Read more: 6 Best Toncoin (TON) Wallets in 2024
Alternatively, a decline may occur if TON cannot break through the $6 mark. In such a case, the price could fall to $5.09.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is solely for informational purposes and should not be interpreted as financial or investment advice. BeInCrypto strives to deliver accurate, unbiased reporting, but market conditions can evolve rapidly without notice. Always carry out your own research and seek professional guidance before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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