Toncoin price has rebounded 3% in the last 48-hours to reclaim the $7.30 mark on July 19, on-chain analysis explores how new users trooping into the network could drive TON further towards the $10 milestone target.
Toncoin Rally Continues after 7.5% Correction
Toncoin has emerged, arguably the best performing Layer-1 blockchain sector in terms of network growth and adoption since the start of 2024. Unsurprisingly, the native coin TON, has been in hot demand among network users and speculative traders alike.
However, since breaking into new all time highs of $8.28 last month, the $8 mark has formed a major psychological resistance for Toncoin bulls. This bearish catalyst came to fore again this week.
The chart above shows how Toncoin price retraced 7.48% to hit $7.09 on July 17 after having reached the weekly peak of $7.65. But within just 24-hours, bull traders stepped on the gas to avert a bearish trend reversal.
At the time of writing on July 19, TON price has rebounded 3% to reclaim the $7.30 mark, on course to post 2 consecutive green candles (gainer trading days).
Toncoin Userbase has Grown 200% In 2024
Since Wednesday, July 17, Toncoin’s rival Layer-1 coins in the top 20 crypto market rankings, including BTC, BNB, and DOGE, have recorded significant pullbacks as crypto investors begin to book some profits after two weeks of persistent uptrend in prices.
This rare market divergence suggests the presence of a unique internal catalyst driving up TON prices while other rival assets have struggled in the last 48 hours. On-chain data trends suggest the persistent increase in Toncoin’s user base could be a key factor.
The IntoTheBlock chart below represents Toncoin’s network growth by tracking the real-time changes in the number of actively funded wallet addresses holding TON.
According to Toncoin blockchain data, there were only 8,460 active wallet addresses held units of TON as of January 1 2024. But thanks to dynamic partnerships and innovative products launched particularly within the GameFi, and Social trading sectors, Toncoin has experienced breakout growth since the turn of the year, which culminated in a 400% rally to new all-time highs on June 15.
At the time of writing on July 19, Toncoin now has over 25,220 active funded addresses, reflecting 200% growth in its core user base since the turn of the year. Essentially, this trend emphasizes Toncoin’s meteoric 400% growth over the last 6-months has been driven by organic growth.
An increase in the number of funded addresses is interpreted as a critical bullish signal as it indicates the influx of new investors, who are not only creating accounts but actively funding them to conduct valuable ecosystem transactions.
This week, Toncoin added another 460 new fund wallets. The demand and fresh capital inflows from those new investors puts upward pressure on TON price. This partly explains why TON price has recorded a 3% bounce between July 17 to July 19, while other mega cap assets have struggled.
Toncoin Price Forecast: Bulls Set Sights on $8 Retest
Toncoin’s 3.12% price surge indicates a positive shift in sentiment. Based on the current technical analysis, TON’s short-term momentum continues to signal more upside ahead.
The Parabolic SAR (Stop and Reverse) indicator is positioned above the current price at $7.71, suggesting a potential shift in trend if the price manages to break above this level.
A successful breach of the SAR level would confirm a bullish reversal, setting the stage for a retest of the key resistance at $8.00.
The initial resistance at $7.71, marked by the Parabolic SAR, must be overcome to maintain the bullish momentum. Beyond this, the psychological resistance at $8.00 is crucial.
A break above $8.00 could signal further gains and validate the bulls’ strength, targeting higher levels.
The Directional Movement Index (DMI) supports the bullish outlook, with the +DI (blue line) at 18.1907 above the -DI (red line) at 14.3139. The ADX (orange line) at 23.9639 suggests a moderately strong trend. If the ADX continues to rise, it will further confirm the strength of the bullish trend.
On the downside, immediate support is found at the recent low of $7.21. If this level fails to hold, the next support level is around $7.00, which is crucial for maintaining the bullish outlook. A drop below $7.00 could invalidate the current bullish setup and lead to further downside.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
