Highlights:
- Toncoin is in an intra-day bull rally after pushing through $5.13 resistance
- Rally supported by rising bullish sentiment across the market
- TON could soon rally to $7 if current momentum sustains
Toncoin (TON) has shown signs of a bullish reversal since September 8, and the momentum continues to build. In the last 24 hours, the cryptocurrency has rallied significantly, breaking through the $5.13 resistance and gaining 3.16% to trade at $5.26 at the time of writing.
Technical Indicators Point Toward Further Gains
Chart analysis suggests that this upward momentum could continue. Toncoin’s recent rally past $5.13 marks a significant shift in market sentiment. If the bulls can maintain this momentum, there’s a good chance that Toncoin could continue its upward trajectory toward $6.90.
On the other hand, if Toncoin loses support at $5.13, it could slide back to its recent low of $4.47. However, given the current bullish market conditions, the odds favor a continued rally for Toncoin in the near term.
Macro Factors Driving TON Rally to $7
One of the critical reasons behind Toncoin’s bullish outlook is the macroeconomic environment. With interest rate cuts expected soon in the US, liquidity could increase across all markets, including cryptocurrencies. Investors flock to riskier assets like cryptocurrencies when liquidity is abundant, and Toncoin is well-positioned to benefit from this trend.
Moreover, Toncoin appears to have already priced in the negative news surrounding the arrest of the Telegram founder, which had previously put downward pressure on its price. With this issue primarily behind it, Toncoin is now trading at what many analysts believe is a discount relative to its intrinsic value. This perception of undervaluation could trigger a significant rally, particularly if Bitcoin continues to gain ground.
Ecosystem Developments Bolster Bullish Sentiment
Beyond technical analysis and macroeconomic factors, Toncoin’s ecosystem also contributes to its bullish momentum. Recently, the Ton Foundation launched a new DeFi Incentive Program, which could further strengthen the network’s position in the decentralized finance (DeFi) space. According to reports, the Ton Foundation has added 5 million Toncoins, worth approximately $24 million, to its DeFi incentive program, bringing the program’s total value to over $75 million.
This program is designed to reward liquidity providers on Toncoin’s DeFi protocols, including decentralized exchanges like STON.fi and DeDust and liquid staking protocols such as Tonstakers and Bemo. The aim is to boost liquidity for key trading pairs, including TON/USDt, stTON/USDt, and tsTON/USDt, by incentivizing users to stake their Toncoins and participate in liquidity pools.
The DeFi incentive program represents a strategic move by the Ton Foundation to drive further adoption of Toncoin within the DeFi space. By offering rewards to liquidity providers and stakers, the foundation fosters a more robust and liquid market for Toncoin. This, in turn, could attract more users to the platform and increase trading volumes, which are bullish indicators for the coin’s price.
Conclusion – A Strong Bullish Outlook for Toncoin
Toncoin’s recent price action and broader market dynamics and ecosystem developments point toward a bullish outlook in the short term. The break above the $5.13 resistance level has set the stage for a TON potential rally to $7, especially as Bitcoin gains strength and lifts altcoins.
The launch of the new DeFi incentive program by the Ton Foundation further boosts the case for Toncoin’s continued growth. The program could help drive Toncoin’s price higher in the coming weeks by incentivizing liquidity providers and fostering deeper liquidity within the ecosystem.