2
Toncoin ($TON) and The Open Network blockchain are back in the spotlight, this time for positive reasons unrelated to an outage or price correction.
On Sunday, September 15, the value of the $USDT stablecoin issued on $TON surpassed $1 billion for the first time. While Toncoin’s price has yet to respond to this development, the increased liquidity could serve as a catalyst for the cryptocurrency to reach new highs. This analysis explores how the surge in liquidity might boost $TON’s market performance.
Toncoin Attracts More Liquidity
According to Token Terminal, the $USDT issued by Tether on $TON was under $800 million on August 31. The surge to $1.03 billion as of now signals growing interest in Toncoin.
BeInCrypto’s findings suggest that this influx of capital into the ecosystem could provide a boost to the Telegram-native cryptocurrency. Increased stablecoin volume could lead to higher user engagement on $TON, and as user activity rises, demand for Toncoin could follow, potentially driving its price up.
This milestone might even give the altcoin a chance to push back toward its all-time high of $8.24.
Read more: 10 Best Altcoin Exchanges In 2024
Currently, Toncoin is priced at $5.55, down 32% from its June peak. However, on-chain data from Santiment shows a notable rise in the Mean Dollar Invested Age (MDIA), a time-weighted metric that tracks the average age of each dollar invested in a coin.
A declining MDIA often signals that dormant addresses are becoming active and moving large amounts, typically supporting a short-term price upswing. However, the recent surge in MDIA indicates investments are becoming more stagnant, which could hinder Toncoin’s short-term price growth. Despite this, Toncoin has a strong chance of seeing a significant rally in the mid-term.
$TON Price Prediction: Time to Retest June Peaks
On the daily chart, BeInCrypto noted that Toncoin has strong support at $5.20, which helped push the token’s price above the 20-day Exponential Moving Average (EMA). The EMA measures trend direction, and when the price rises above it, it signals a bullish trend. Historically, this setup played a key role in Toncoin’s run above $8 in June.
Currently, Toncoin faces resistance at $6, a key supply zone. However, if demand continues to grow, $TON could surpass this level, potentially rallying to $8.32 by the fourth quarter of this year.
Read more: 6 Best Toncoin ($TON) Wallets in 2024
On the contrary, a reversal might occur if $TON fails to breach $6. In that scenario, the price might tumble to $5.09.
coindesk.com
coinedition.com
