Can Toncoin (TON) Price Explode by Over 50% in June

The price of Toncoin (TON) has surged by over 200% so far in 2024 and may continue surging in June owing to a flurry of bullish indicators. Let’s discuss them as follows.

TON is Nearing Ascending Triangle Breakout

Toncoin (TON) is on the verge of a significant price movement in the upcoming weeks, a development primarily attributed to the prevailing ascending triangle pattern. This technical analysis provides a strong basis for our projection.

Notably, the TON price has been consolidating inside a triangle-shaped range, defined by a horizontal trendline resistance and a rising trendline support. This trend reflects that buyers are gradually willing to pay higher prices while sellers are consistently offloading their positions at a particular resistance level.

Ascending triangle patterns in an uptrend typically culminate in a breakout above the resistance line while accompanying increased trading volumes. Meanwhile, their breakout target is determined by adding the breakout price level to the maximum price distance between the triangle’s upper and lower trendline.

Applying the same technical rule to TON’s ongoing price move brings its ascending triangle upside target to around 11.80%, easily over 50% from the current price levels.

The alignment of moving averages, which serve as support levels for TON, and the current RSI level, still below the overbought threshold of 70, reflect a positive outlook for TON’s price growth. This provides additional reassurance for the bullish projection.

Toncoin Network Growth Supports TON’s Upside Outlook

TON’s price 50% rally outlook for June picks further bullish cues from its monumental network growth in recent months.

For instance, the total-value-locked (TVL) across the TON blockchain reached a record high of 55.8 million TON on June 5 from 5.94 million TON at the year’s beginning—up by about 830.65% year-to-date. In other words, more users are committing their TON holdings to the network, signifying a substantial increase in network utilization and adoption.

As more value gets locked in the TON ecosystem, the demand for TON tokens typically increases. That is because users often need to acquire TON tokens to participate in various DeFi activities, such as staking, lending, borrowing, and providing liquidity.

The increased demand and a relatively fixed supply of TON tokens create upward pressure on the price.

TON Accumulation Trend is Strong

Analyzing the Toncoin (TON) supply distribution chart from Santiment shows an increase in TON holdings among its richest address cohorts.

For instance, the green line, representing wallets with 10,000 to 100,000 coins, shows an overall increase in holdings. From mid-March to early June, the percentage of TON held by these wallets has grown, reaching around 32.27% by June 6. This shows that smaller investors, including retail or small institutional investors, are accumulating TON.

Meanwhile, the black line, representing wallets with 100,000 to 1,000,000 coins, shows a slight decline in holdings. The percentage of TON held by these mid-sized wallets has decreased from about 31.39% in mid-March to around 30.93% by June 6, 2024, a slight reduction indicating profit-taking or rebalancing by these investors.

The slight decline in holdings by mid-sized wallets suggests that while there is some selling pressure, it is not substantial enough to indicate a loss of confidence. The modest reduction likely points to profit-taking or portfolio rebalancing rather than a broader loss of faith in TON.