Toncoin has been surging in price recently, reaching its highest point in two years.
This surge is likely due to Telegram’s announcement of a remuneration program for channel owners and the (possibly) upcoming Telegram IPO.
The Telegram IPO could bring in fresh liquidity of around $30 billion and lead to massive expansion of the TON blockchain.
Toncoin is currently testing support at $3.55, but if it can break above this level, it could continue to rally towards $5.
Investors should be on the lookout for a close above $3.55 on the daily chart.
Toncoin has been making waves in the crypto industry this week, particularly because it is at the forefront of the possibly incoming altcoin season, and has managed to gain more than 30% over the last week alone.
Quite recently, the cryptocurrency has hit its highest point in the last two years, and there might be a good reason for this uptick.
Here’s everything to know
Toncoin’s performance in and off the charts has been highly impressive, as shown in the snapshot below:
Toncoin’s price performance
As shown in the chart above, TonCoin has managed to rake in 30% gains over the last week, with more than 20% of these gains coming in between Tuesday and Wednesday this week.
Moreover, the cryptocurrency has also rallied to around $3.58, breaking the $3.12 (which was last seen in October 2022).
So far, this surge shows that Toncoin isn’t just rallying in terms of price. The 3515 uptick in trading volume also shows that investor interest is growing, and TonCoin has a lot of potential to rally further upwards in the coming days/weeks.
It turns out that a lot is going on for TonCoin under the hood.
In a series of strategic announcements and developments, we learned in the first week of March 2024, that Telegram and The Open Network (TON) were planning a remuneration program, in which channel owners get paid in crypto from ad revenue.
The TON/Telegram announcement
Moreover, Telegram’s plan to share this ad revenue with the channel owners 50:50 sparked a lot of interest in the $TON, signalling Telegram and TON’s commitment to integrating crypto into its operations.
There was also the development from Binance in late February this year, announcing the launch of a perpetual futures contract for the $TON token.
To top things off, Pavel Durov, the founder of Telegram recently had an interview with the Financial Times.
During the interview, Durov mentioned that Telegram’s user base has expanded to around 900 million, and the platform is now very close to being profitable.
This means that Telegram is headed towards an IPO, opening the door to institutional investors and leading to massive expansion of the social media platform, the TON blockchain, as well as the $TON token.
These investors are set to bring in fresh liquidity of around $30 billion, democratizing access to Telegram’s value.
“We are hoping to become profitable next year, if not this year.”
– Pavel Durov, the founder of Telegram
While Durov didn’t go into much detail about the possible IPO, insiders suggest that a U.S. listing is on the horizon, depending on how profitable the company can become, and how favourable the market conditions are.
Overall, this might only be the start of a long and profitable future for TON, as a possible IPO nears.
Below, we can see TON’s break above the $3.55 high very clearly, for the first time since October 2022.
TonCoin’s price performance
The chart above also shows that the cryptocurrency is reversing for a retest of this $3.55 support after a rejection of around $3.93.
A retest of the $3.55 support is completely expected after such a breakout, and investors should be on the lookout for a close above $3.55 on the cryptocurrency.
Considering how the RSI on the daily chart currently shows overbought conditions, TON might enter a consolidation above this $3.55 resistance.
TonCoin’s price performance
However, once this consolidation completes its course, TON will become highly poised to continue further upwards and hit the 0% Fibonacci level between $5.38 and $5.44.
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