Toncoin has surged by double digits on both weekly and daily timeframes. The cryptocurrency is now easily one of the best-performing cryptocurrencies on the market at the moment, with a $7.5 billion trading volume, according to CoinMarketCap.
Toncoin currently trades at $2.19 after hitting a weekly high of $2.25.
This leaves us to wonder? Is $3 incoming?
Toncoin, formerly known as Gram, is a decentralized layer-1 blockchain cryptocurrency that was originally developed by Telegram in 2018.
The project was later abandoned by Telegram but has been continued by a non-profit foundation called the TON Foundation.
According to CoinMarketCap, Toncoin has now ranked the 10th largest cryptocurrency by market cap and is registering a 23% gain over the last week, as well as an even more impressive 13% rally over the last 24 hours.
The cryptocurrency's market cap has also been rising at a steady rate throughout 2023, allowing this cryptocurrency to quietly climb up the ladder to the 10th position, without attracting much attention.
CoinMarketCap data shows that Toncoin now has a $7.6 billion market cap and a 32.26% gain over the last year.
Toncoin is also beating other major cryptocurrencies like Polkadot, Polygon and even Litecoin in terms of market cap, despite being in the news much less often.
As it turns out, Toncoin's rally is not without reason.
Toncoin's price rallied by 7% initially on Thursday, when Telegram chose TON as their preferred blockchain network for Web3 infrastructure.
Nearly three years after initially revealing plans to create a Web3 ecosystem, Telegram finally released its native cryptocurrency wallet at Singapore's current Token2049 event.
The Open Network (TON) blockchain was used to create the cryptocurrency wallet, which is currently accessible to Telegram's 800 million users globally.
According to reports, the Telegram Ads platform for the messaging app will be prioritized for projects developed on the TON blockchain, according to the TON Foundation.
Recall that TON and Telegram initially cut ties in 2018.
However, with their renewed partnership, the TON Foundation intends to develop the Web3 architecture on Telegram, to solve onboarding problems and provide all Telegram users with access to cryptocurrency.
According to the charts, TON has been rising steadily since August, and is showing no signs of slowing down.
Toncoin is now approaching the $2.4 resistance as it continues to rally straight up.
However, what is the likelihood of the bulls being stopped out at $2.4? Is Toncoin going to hit a dead end and decline to the next viable support around $1.95?
According to the chart illustrated above, Toncoin looks unlikely to break through $2.4.
This is because the RSI on the daily chart shows overbought conditions, indicating that the cryptocurrency is now overpriced and is likely to be sold by investors for profit soon.
One likely scenario is TON being stopped out at $2.4, and then reversing course to the $1.95 zone as the market cools off.
The $1.95 zone will be the deciding factor at this point.
If a bounce off this zone occurs, we may see TON reattempt to take the $2.4 zone, and then rally further upwards to $3 if the bulls fight hard enough.
If $1.95 doesn't hold, TON will inevitably decline further down to $1.5 or lower.
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