Toncoin Forms Bullish Pennant as Burn Rate and Transactions Increase

Toncoin, which has faced some pressure recently, is showing signs of potential growth despite underperforming compared to other cryptocurrencies like Bitcoin and Ripple XRP. As of Saturday, Toncoin is trading at $5.35, marking a drop of more than 35% from its peak last year. While its price has been struggling to catch up with the strong bullish trends of other cryptocurrencies, there are positive indicators emerging from the blockchain’s on-chain data that suggest a potential rebound.

The on-chain activity surrounding Toncoin shows a growing trend. According to recent data from Ton Stat, the number of daily wallet activations on the TON Blockchain surged to 185,395 on Friday, the highest daily increase since December 13. This spike has helped bring the total number of active wallets on the network to over 38.8 million, highlighting a strong uptick in user engagement and adoption of the blockchain. This increase in activity reflects growing confidence in the Toncoin ecosystem and indicates that the network is continuing to grow despite the volatility in its token’s price.

Additionally, Toncoin’s token burn rate has seen a significant increase. The daily number of Toncoins burned has risen to nearly 12,000, the highest level since November last year. Token burns are considered a positive sign as they reduce the overall supply of tokens, potentially increasing scarcity and, in turn, driving up the token’s value. The number of minted tokens, however, has decreased slightly, with only 80,800 tokens minted recently compared to nearly 90,000 at the beginning of the year. This reduced issuance, combined with the rise in token burns, can help offset the inflationary pressures on Toncoin’s price, making it more appealing to investors.

Further contributing to the positive outlook is the rise in the amount of fees collected within the TON ecosystem, which reached 23,790 TON—marking the highest increase in nearly a month. The increase in transaction fees often signals more activity within the network, which can lead to higher demand for the native token, Toncoin.

Despite these encouraging signs, Toncoin has faced some downward pressure, primarily due to the performance of other tokens in its ecosystem. For instance, some of the popular tokens like Hamster Kombat, Notcoin, and Catizen have faced declines, which have somewhat affected the overall sentiment around Toncoin. However, the fact that Toncoin has maintained stability in such a market climate indicates a level of resilience that investors may find appealing.

From a technical perspective, Toncoin appears to be forming a symmetrical triangle pattern on its daily chart. This chart pattern typically indicates consolidation, where the price is gradually narrowing between two trendlines, often leading to a breakout. In Toncoin’s case, the upper side of the triangle has connected the highest points of price movement since June 15, while the lower side has aligned with the lowest levels since September. This pattern suggests that Toncoin might be preparing for a breakout soon, especially considering that it surged from below $1 to a high of $8.30 previously.

Technical analysts are largely optimistic about Toncoin’s price action in the near future. CryptoQuant analyst Darkfost noted that the volatility for Toncoin has dropped, moving below the 0.25 threshold. Historically, low volatility periods have been followed by market reversals or significant price swings. Other analysts have pointed to the low-risk period indicated by the Normalized Risk Metric, which also tends to precede sharp price movements. These technical indicators, combined with the positive on-chain data, suggest that Toncoin could be gearing up for a bullish rally in the coming weeks or months.

If the predicted bullish breakout occurs, Toncoin could potentially revisit its all-time high of $8.30, representing a 55% increase from its current price of $5.35. Investors may want to keep an eye on Toncoin as it continues to exhibit signs of growth and strength in both its blockchain activity and technical chart patterns. With improving on-chain metrics and a strong technical setup, Toncoin could be poised for significant price action in the near future, particularly if the market conditions remain favorable.