WhatsApp crashed on Tuesday a social messaging platform with billions of users. As it always happens whenever a platform crashes, the name of other competing social messaging platforms comes up.
One of these competitors, naturally, is Telegram.
A few hours after the crash, WhatsApp came back online, and all seemed to be back to normal. However, a certain cryptocurrency skyrocketed right after the WhatsApp crash and attracted quite a buzz from the crypto community.
This cryptocurrency is called Toncoin and is (coincidentally) related to Telegram.
TON is an acronym for "The Open Network".
It is a self-described "community-driven" blockchain with "much to offer". The Open Network was originally built by Telegram. It is a network designed to accommodate billions of users and allow quick, cheap and less energy-intensive transactions over the blockchain.
According to Telegram and The Open Network, TON was designed with "everyday users" in mind.
On the other hand, TON is the native cryptocurrency of the TON network, much like Ether and ADA are the native cryptocurrencies of the Ethereum and Cardano networks, respectively.
Toncoin has the ticker symbol "TON" and was formerly known as "Gram". It is used as a payment system and as gas fees on the Proof-of-Stake TON blockchain.
Not many people know this because Ton is a relatively unknown cryptocurrency. Still, Ton broke the record for the second-largest token sale in April 2018 after raising $1.7 billion through the private sale of Gram (now Toncoin) tokens.
As of 2022, TON and telegram are no longer affiliated as Telegram withdrew from the development of the TON network.
According to data from CoinMarketCap, TON ranked #30th in the CoinMarketCap rankings and is up by 17.5% over the last day.
TON trades at $1.8 at the time of writing, has a circulating supply of 1.22 billion TON, and a $2.2 billion market cap.
As illustrated below, Toncoin rose 17.5%, from a low of $1.2 to a high of $1.8, where it now sits.
Like the other cryptocurrencies on the market, Toncoin has also experienced a price dip and has dropped more than 70% from its $5.4 high in December 2021.
However, the cryptocurrency's price action over the long term seems promising.
So far, the immediate local resistance around $2.3 appears to be where Toncoin is headed.
It is easy to identify and draw a cup pattern on the Toncoin charts at this point, indicating that the cryptocurrency has some potential for further upward movement.
And if the bulls apply significantly more pressure, Toncoin may rally upward by as much as 30% to about $2.59 in the coming weeks.
Toncoin is down by 5% over the last few hours.
This is predictable behavior on Toncoin's part, because nine out of ten times, right after breaking through a support level, the price action of assets reverses for a retest, possible consolidation, and then further movement in either direction.
After breaking through the semi-major resistance of around $1.658 over the last 24 hours, the price action of Toncoin appears to have reversed and is now attempting to retest this zone.
If the bulls manage to initiate a bounce, Toncoin may continue upward in its trajectory toward $2.3. However, if the $1.7 support fails to hold, Toncoin has a fair chance of breaking through this support and trading lower to the $1.2 zone.
The Fibonacci retracement tool on Toncoin's daily chart tells some very interesting stories.
The price action of Toncoin appears to have just broken the 7.8% level on the Fibonacci retracement tool, marking a breakout from the $1.61 zone.
Toncoin now appears to be aiming for a retest of this level and may either bounce or break the support downwards.
If a bounce happens after this retest (and possible consolidation), the next resistance the cryptocurrency has to worry about is the 61.8% Fibonacci level around $2.27 ($2.3, as illustrated in the previous section).
If a breakout to the upside happens, Toncoin is expected to rally to the 50% Fibonacci level around the $2.7 mark.
On the flip side, if the bears win the fight and this current reversal in Toncoin's price action leads to a breakdown of the $1.64 zone, the cryptocurrency is expected to tumble straight down to the $1.2 – $1 zone (or even lower).
In all, the important thing is to properly analyze one's investment options before jumping into a trade.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.