• Toncoin’s total value locked (TVL) surged to over $218 million, driving a price rally.

• Daily active addresses on the TON network have increased by 500% since March.

Toncoin (TON), the native cryptocurrency of the Toncoin network, has experienced notable underperformance compared to the broader crypto market in recent weeks. Despite a general uptrend in altcoins driven by Bitcoin’s recovery above $68,000, TON has seen a sharp reversal after hitting resistance at $7.5.

Toncoin’s total value locked (TVL) has soared to over $218 million, reflecting increased adoption and utilization of the platform’s decentralized applications (dApps).

This surge in TVL has been a significant factor in Toncoin’s recent price rally, with the token trading at $6.52 and a market capitalization exceeding $22 billion. This performance places Toncoin as the eighth-largest cryptocurrency by market cap, drawing considerable attention in the crypto market due to its strong performance and rapidly expanding ecosystem.

Growing Network Activity and User Adoption

Data from Santiment reveals a 500% increase in the number of daily active addresses on the TON network since March, with a 100% rise in the past month alone. This substantial increase in network activity indicates growing interest and adoption, suggesting potential further upward price momentum for Toncoin if the trend continues.

Several factors are driving Toncoin’s momentum. According to crypto market observer Tindorr, one key driver is the 50% annual percentage yield (APY) on USDT campaigns for new users. This initiative has attracted significant funds, evidenced by the $210 million total value locked in the TON ecosystem. Additionally, the launch of the $NOT memecoin on Binance has further boosted interest in Toncoin.

Another critical factor is the anticipated influx of Telegram users. With billions of potential users, Toncoin stands to benefit immensely. The seamless user experience in accessing dApps via Telegram enhances its appeal. Furthermore, the ongoing $200 million incentive campaign, The Open League, has significantly boosted engagement within the ecosystem.

Technical Analysis and Market Position

The cryptocurrency has shown significant bullish momentum, supported by recent ecosystem developments and increasing market interest. Bearish Reversal and Key Support Levels. After a strong rally in early May that saw Toncoin surge from $4.6 to $7.5, marking a 63% increase, the cryptocurrency encountered significant resistance at its all-time high. This led to a 17% decline, pushing the price to $6.5.

Technical analysis indicates the formation of a double-top pattern, often a precursor to a more substantial downtrend.

If the bearish momentum continues, the $6.2 support level becomes crucial. A breach of this support could lead to a further 24% decline, targeting the neckline support at $4.7. Such a move would complete the double-top pattern and signal a shift in market sentiment toward a bearish outlook.

Several technical indicators suggest a precarious situation for Toncoin. The Relative Strength Index (RSI) has shown bearish divergence, increasing selling pressure. However, the broader trend remains bullish, as evidenced by the alignment of the daily Exponential Moving Averages (EMAs) at 20, 50, 100, and 200 days.