TONcoin Price Forms Bullish Pennant as Burn Rate and Transactions Rise

As a researcher studying Toncoin, I observed that despite a broader recovery in the cryptocurrency market, the price of Toncoin continued to face downward pressure. However, it’s worth noting that this period also saw an enhancement in Toncoin’s on-chain data.

On the weekend, Toncoin (TON) was being exchanged for approximately $5.35, representing a drop of over 35% from its peak price seen in the previous year. Unlike Bitcoin (BTC) and Ripple (XRP), which have soared to new heights this year, Toncoin has trailed behind these other cryptocurrencies in terms of growth.

Data recorded on the TON Blockchain indicates that it has been performing favorably. As per Ton Stat, daily on-chain activations of wallets reached a peak of 185,395 on Friday, marking the highest surge since December 13. This significant spike boosted the overall number of active on-chain wallets to more than 38.8 million.

Additionally, there has been an increase in the daily destruction of TON tokens, reaching nearly 12,000 – the highest level since last November. This burning occurred despite a decrease in the creation of new tokens, which dropped to 80,800 from around 90,000 earlier this year.

It’s been revealed through additional data that the TON ecosystem has seen a significant increase in fee collection, reaching 23,790 TON – the highest surge in fees in nearly a month.

Consequently, it appears that Toncoin’s price may be influenced by the current performance of its leading ecosystem tokens. For instance, notable tokens such as Hamster Kombat, Notcoin, and Catizen have experienced significant drops of more than ten percent each.

Toncoin price analysis

As a crypto analyst, I’ve been observing a positive outlook towards TON’s price among my peers. In a recent analysis, I, Darkfost from CryptoQuant, pointed out that the annualized realized volatility of TON has decreased significantly and dipped below the 0.25 threshold. I am confident that such periods of reduced volatility often precede market reversals, suggesting potential price appreciation for TON in the near future.

A different expert opined that the Normalized Risk Metric was approaching a phase with minimal risk. Similar to periods of low volatility, he posits that such low-risk phases frequently precede significant fluctuations in market dynamics.

The daily graph indicates that the Toncoin price is shaping up as a symmetrical triangle. This pattern is formed by joining the highest price points since June 15 at the top, and linking the lowest price points from September of last year at the bottom.

The triangle shape began developing as the price climbed from $1 to a peak of $8.30, hinting at a possible bullish pennant formation. Consequently, there’s a strong possibility that the coin will experience an uptrend in the upcoming weeks or months. If this occurs, the first goal would be reaching its previous high of $8.30, which represents a potential increase of 55% from the current value.

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2025-01-18 21:34