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Toncoin forms a bullish pennant pattern, a technical indicator suggesting potential upward momentum, despite the cryptocurrency trading at $5.35 as of Saturday, representing a 35% decline from its peak last year, key on-chain metrics signal promising developments for the Toncoin ecosystem.
Recent data from TonStat, a trusted analytics platform for the TON blockchain, underscores significant activity within the ecosystem. On Friday, the number of daily on-chain wallet activations soared to 185,395 the largest spike since December 13. This surge propelled the total number of on-chain activated wallets to an impressive 38.8 million, a milestone reflecting Toncoin’s growing user base.
Additionally, the number of burned TON tokens a metric closely watched for its impact on supply dynamics has climbed dramatically. Nearly 12,000 tokens were burned recently, marking the highest burn rate since November 2023. Simultaneously, the minting of new tokens has slowed, with only 80,800 tokens minted, down from approximately 90,000 earlier this year.
The Toncoin ecosystem also recorded a rise in collected fees, which reached 23,790 TON—the highest increase in nearly a month. These metrics collectively indicate a thriving blockchain environment, albeit with challenges from underperforming ecosystem tokens like Hamster Kombat, Notcoin, and Catizen, which have experienced double-digit declines.
Technical analysis suggests that Toncoin is forming a bullish pennant, a pattern typically seen as a precursor to a breakout. This symmetrical triangle connects the highs since June 15 and the lows dating back to September 2023.
The pattern follows a steep price rally in which Toncoin surged from below $1 to a record $8.30 before retreating. “Such formations often signal consolidation before the resumption of the prior trend,” explained CryptoQuant analyst Darkfost. He highlighted that Toncoin’s annualized realized volatility had dropped below the 0.25 threshold, a phenomenon often linked to market reversals.
Another analyst pointed to the Normalized Risk Metric, noting that it is nearing a low-risk period. “Periods of reduced risk often set the stage for dramatic price swings,” the analyst said, suggesting that Toncoin could soon embark on a significant move.
Despite the optimistic outlook, Toncoin’s recent price performance has lagged behind major cryptocurrencies like Bitcoin and Ripple, which have reached record highs this year. Analysts attribute this underperformance to the mixed results from its broader ecosystem.
While the blockchain’s on-chain data is improving, some of its top projects, such as Hamster Kombat and Catizen, have seen steep declines, potentially weighing on Toncoin’s market sentiment. “Ecosystem health is crucial for long-term growth, and these projects need to recover to support Toncoin’s price momentum,” said David Matthews, a blockchain strategist.
Looking ahead, the bullish pennant formation suggests that Toncoin could rally toward its all-time high of $8.30, representing a potential 55% increase from its current levels. Should the breakout occur, Toncoin would join the ranks of other major cryptocurrencies that have recently seen explosive growth.
However, the journey won’t be without challenges. Market conditions, macroeconomic factors, and the performance of its ecosystem tokens will play a critical role in determining whether Toncoin can capitalize on its promising technical setup.
Toncoin bullish pennant and improving on-chain metrics signal the potential for a significant price breakout. As activity within the TON blockchain grows and supply-side dynamics tighten, analysts are keeping a close eye on the cryptocurrency’s next moves. For now, Toncoin remains a compelling asset for traders betting on its technical and fundamental strength.
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