Toncoin False Breakdown Hints at 60% Potential Rebound in Q3

Toncoin (TON) has declined by nearly 7.50% in the past two days to reach as low as $7 on July 18. In doing so, the Telegram-linked cryptocurrency has dropped below the rising trendline support of its prevailing ascending channel pattern.

However, rather than spelling trouble, TON’s correction may set the stage for a substantial rally in the third quarter of 2024, wherein the cryptocurrency could surge by 60%.

TON’s False Breakdown Hints At Major Rally Ahead

Toncoin (TON) has recently closed below the lower trendline of its ascending channel.

This move would typically signal that the coin’s bullish momentum is weakening and that the price might be heading for a correction. However, the accompanying decline in trading volumes suggests that the TON selling pressure is not strong. In other words, the lack of volume suggests that most traders are not heavily selling, which means there is no widespread conviction about a bearish reversal.

This may result in a false breakdown scenario. A false breakdown occurs when the price temporarily breaches a key support level but then quickly recovers above it. This often traps bearish traders and leads to a rapid reversal, fueled by short-covering and renewed buying interest. In TON’s case, a false breakdown below the ascending triangle’s lower trendline could set the stage for a bullish reversal.

In April-May 2024, TON experienced a similar false breakdown, dipping below the ascending triangle’s lower trendline before swiftly rebounding. This event led to a 63% rally.

If the fractal repeats, TON’s immediate upside target is the ascending triangle’s upper trendline at around $7.70. Should TON decisively break above the upper trendline, it would likely confirm an ascending triangle breakout.

The expected price move in such a scenario is calculated by measuring the maximum distance between the triangle’s upper and lower trendlines and adding it to the breakout level. This calculation suggests a potential upside toward $11.56, up about 60% from the current price levels, in Q3 2024.

Toncoin Fundamental Analysis: Lots of Optimistic News

The bullish technical outlook for Toncoin is supported by several major news updates that highlight its growing adoption. One significant development is the launch of the “TONNECT 2024 initiative” by Bitget Wallet. This initiative aims to accelerate the development of the TON ecosystem and simplify the creation and management of wallets, making it easier for users to engage with the platform.

Another noteworthy announcement comes from The Open Platform (TOP), which has announced a strategic investment in Pluto Studio, the developer of the popular Telegram-based crypto game, Catizen. This investment confirms that a significant portion of the total token supply will be airdropped to players on the TON blockchain, further incentivizing engagement and adoption within the community.

In an interesting twist, players of the viral Telegram crypto game, Hamster Kombat, are driving a significant increase in sales of massage guns. These devices are being used to enhance gameplay by boosting players’ screen-tapping speed and efficiency, illustrating the innovative ways in which users are optimizing their gaming experience.

Additionally, the launch of the tap-to-earn game ‘Musk Empire‘ on Telegram underscores the rising trend of tap-to-earn gaming within the Telegram platform. This trend highlights the potential for new gameplay mechanics to attract and engage players, further expanding the TON ecosystem.

Finally, the announcement of TON Teleport BTC, a trustless bridge for secure Bitcoin transfers to the Telegram-linked network, signifies the expansion of DeFi activities on the TON blockchain.