Toncoin price showed a modest 0.2% loss on Wednesday’s U.S. trading session, trading at $5.2. The slight downtick forms a neutral candle in the daily chart, continuing the consolidation trend intact since early October. However, with increasing USDT transactions on the TON network and bullish reversal, the altcoin price is preparing for an $8 breakout.
Can USDT Adoption on TON Propel Toncoin Price for $8 Breakout?
According to CryptoQuant analyst Maartunn, the USDT stablecoin is gaining significant traction on The Open Network (TON) blockchain. Operating as a Jetton, which is TON’s equivalent to Ethereum’s ERC-20 token standard, USDT has quickly become the most popular token on the platform, registering over 4.5 million transactions in the last 30 days.
Moreover, the USDT transaction on TON exceeded $300 Million just a month ago. This volume indicates the increasing appeal of the TON blockchain for stablecoin transactions. The ability to host these transactions securely and efficiently accentuates a robust network, which should demand pressure for its native cryptocurrency.
USDT on $TON increasing in popularity
“USDT has become the most popular Jetton over the past 30 days, with 4,542,418 transactions during this period. Additionally, around a month ago, USDT transactions on #TON exceeded $300 million.” – By @JA_Maartun
Link … pic.twitter.com/EjvRZnHYIz
— CryptoQuant.com (@cryptoquant_com) October 16, 2024
By press time, the Toncoin price had traded at $5.24 while maintaining a market cap of $13.23 billion.
Whale Accumulation and Exchange Supply Drop Point to TON Rally
According to Santiment data, the Toncoin supply held by top addresses has surged from 23.6% to 28.07%. The major holders’ increasing holding highlights their confidence in TON’s future growth. Historically, the accumulation trend from whales has bolstered major price reversals and sustained recovery.
In addition, the TON supply on exchanges has plunged from 2.54 Million to 1.68 Million since September. This decrease in exchange balances often signals that investors move their assets into cold storage or private wallets, indicating a shift towards long-term holding rather than short-term trading or selling.
Whale Accumulation and Exchange Supply | Santiment
The active whale accumulation and reduced sell-off pressure on the exchange should bolster the Toncoin price for a sustained rally.
TON Price Eyes Major Breakout Amid Reversal Pattern
Over the past two weeks, the Toncoin price has shown stability above the $5 psychological level. While the daily chart shows this consolidation as uncertainty among buyers or sellers, the lower time frame reveals the inverted head and shoulder pattern formation.
Theoretically, the pattern’s three-through signal buyers are actively defending the lower price levels, which often precedes a major reversal. The TON coin is 2.22% away from challenging the neckline resistance at $5.3.
A successful breakout will boost the buying momentum and drive the asset past $6, followed by $8.2.
TON/USDT -1d Chart
Conversely, if the Toncoin price fails to breach the overhead trendline intact since July 2024, the sellers could pressurize for the next correction push.
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