• Toncoin’s popularity has surged due to a significant increase in its user base, growing by 200% since the start of 2024.
• The number of actively funded wallet addresses holding TON has risen from 8,460 to over 25,220, driving a 400% rally in the token’s price this year.

While the rest of the crypto market has rallied over the past week, Toncoin (TON) has given pretty flat returns. The TON altcoin has enjoyed a pretty strong run-up this year and is up by 400% gains year-to-date. However, it seems that TON is willing to rest before resuming its next leg of the journey upwards.

As of press time, Toncoin (TON) is trading 0.36% up at $7.32 with a market cap of $18.398 billion. Earlier this month, TON surpassed Dogecoin to become the eighth-largest crypto by market cap, reported CNF.

Since the beginning of 2024, Toncoin has emerged as one of the best-performing Layer-1 blockchains in terms of network growth and adoption. As a result, the native TON altcoin has been in hot demand among speculative traders and network users alike.

However, after reaching a new all-time high of $8.28 last month, the $8 mark has become a significant psychological resistance for Toncoin bulls. This bearish catalyst re-emerged this week.

The chart below illustrates how Toncoin’s price retraced 7.48%, falling to $7.09 on July 17, after peaking at $7.65 earlier in the week. Within just 24 hours, bullish traders intervened to prevent a bearish trend reversal.

Toncoin Registers Sharp Surge in User Base

One of the major reasons behind Toncoin’s popularity is the strong growth in the user base witnessed this year in 2024. The chart below from IntoTheBlock shows Toncoin’s network growth by tracking 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 holding units of TON as of January 1, 2024. However, due to dynamic partnerships and innovative products, particularly in the GameFi and social trading sectors, Toncoin has experienced significant growth since the start of the year. This growth culminated in a 400% rally, reaching new all-time highs on June 15.

As of July 19, Toncoin now boasts over 25,220 active funded addresses, reflecting a 200% increase in its core user base since the beginning of the year. This trend highlights that Toncoin’s impressive 400% growth over the past six months has been driven by organic growth.

The surge in the total number of addresses suggests a critical bullish signal thereby indicating the rise in new investors. In the last week, Toncoin has added a total of 460 new fund wallets. This fresh capital inflows from new investors would create upward pressure for the TON altcoin. Earlier, CNF reported that Toncoin’s whale activity has also surged by nearly 1000% in the last week.

TON Price Action

Technical analysis indicates that TON’s short-term momentum points to further upside potential. As reported by CNF, the TON open interest shot up by $287 million recently.

The Parabolic SAR (Stop and Reverse) indicator is currently positioned above the price at $7.71, suggesting a potential trend shift if the price breaks 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.

To maintain bullish momentum, TON must first overcome the initial resistance at $7.71, marked by the Parabolic SAR. Beyond this, surpassing the psychological resistance at $8.00 is crucial. A break above $8.00 could signal further gains, validating the bulls’ strength and targeting higher levels.