Russia’s New Crypto Law Could Drive Toncoin (TON) Price to $7

Toncoin Price Analysis:

Toncoin price extended its 3-day winning streak above the $6.85 on Aug 10, gaining another 7% as bulls seek to build on positive momentum from Russia legalizing crypto mining.

Why Toncoin Price is Outperforming Bitcoin

Toncoin (TON) has been on a remarkable rally this week, with its price surging by 43% between August 5 and August 10, 2024. This comes in the wake of Russia’s recent legalization of crypto mining, a decision that has significantly impacted the broader cryptocurrency market.

On August 10, TON’s price climbed to $6.85, marking a 7% increase over the past 48 hours. This price action extends a 34% rebound that began after the market crash on August 5, indicating strong bullish momentum.

Russia’s move to legalize crypto mining has particularly significant implications for Toncoin, as the project has deep roots in the Russian tech ecosystem. Originally developed by Telegram, a platform founded by the Russian-born Durov brothers, Toncoin was initially poised to serve as the backbone of Telegram’s blockchain ecosystem.

Although regulatory pressures forced Telegram to distance itself from the project, Toncoin remains widely associated with the Russian tech community. This association is likely to amplify Toncoin’s appeal among Russian investors and could lead to increased adoption as the legal framework for crypto mining in Russia becomes clearer.

While Russia’s new legislation on crypto mining will not take effect until November, traders are already positioning themselves to capitalize on the anticipated market shifts. Bitcoin (BTC), in contrast, experienced a 28% upswing between August 5 and August 8, but its rally was tempered by a 4% correction at the time of publication on Aug 10.

This early price moves suggest that crypto traders expect Russia friendlier stance on crypto to have a bigger positive impact on Toncoin than Bitcoin.

Alongside the ongoing Toncoin price rally, a critical on-chain metric further supports the bullish outlook for TON.

Retail Traders Driving TON Rally Despite $5B Decline in Whale Demand

In June 2022, Toncoin transitioned from a Proof of Work (PoW) to a Proof of Stake (PoS) system making Russia’s new mining law seeming irrelevant to TON at first glance.

However, its strong ties to the Russian market since inception, could have long-term bullish implications. Retail traders appear to be embracing this narrative, driving demand for TON in the last 2 days, even as whale activity declines.

IntoTheBlock’s “Large Transactions Volume” metric, which tracks transactions exceeding $100,000, reveals a significant shift in market dynamics.

Between August 7 and August 8, while TON’s price rose by another 7%, the volume of large transactions fell from 1.52 billion TON to 769 million TON. This drop indicates that whale demand has decreased by approximately $5.2 billion, based on the current price of $6.8 per TON.

Despite this decline in whale activity, the rising demand among retail investors suggests that the ongoing TON rally is driven by organic, widespread interest. This trend points to a persistent uptrend, supported by a broad base of smaller investors rather than large holders.

TON Price Forecast: $7.50 Breakout Imminent?

Toncoin’s price action over the past few days indicates a potential breakout above the $7.50 resistance level. The first chart shows that after rebounding from the market crash, TON has maintained its bullish momentum, with the current price sitting at $6.71. The next key resistance level is at $7.22, with strong bullish momentum potentially pushing the price towards $7.50 in the short term.

The technical indicators also suggest a favorable outlook. The Donchian Channels indicate that TON has broken above the middle band, which often signals the start of a bullish trend.

Additionally, the Balance of Power (BoP) indicator, although currently showing a neutral reading, could tilt in favor of the bulls if the buying pressure continues.

If TON manages to break above the $7.50 resistance, the next target could be around $8.00. On the downside, support levels are observed at $6.00 and $5.50, where buying interest could prevent further declines. However, given the current market sentiment and the strong fundamentals driving TON’s price, a breakout above $7.50 seems imminent