TON Price Targets $6 Recovery as Stablecoin Supply on TON Blockchain Jumps 13x

After the arrest and legal drama around Pavel Durov, the founder of Telegram, the TON network is showing signs of resilience.

Toncoin price faced selling pressure on Wednesday as the crypto market displayed a bearish outlook. The bears drove the price down by 1.5% intraday, pushing it closer to a support break at $5 as Bitcoin price approached a $60k breakdown.

Meanwhile, the TON blockchain witnessed a remarkable growth in stablecoin supply, which surged by 13x since April. According to crypto enthusiast Nick Garcia, the stablecoin supply has risen by 25% since the arrest of Telegram founder Pavel Durov.

"Following the turbulence surrounding Pavel, @ton_blockchain is showing signs of life. Stablecoin supply is up 25% since the arrest, bringing the total increase to 13X since April. If you squint, the situation has parallels to FTX."

This growth in stablecoin supply could potentially boost liquidity and network usage, increasing the demand for Toncoin as a utility token for transaction fees and staking. As a result, a price increase for Toncoin may be supported.

Furthermore, data from TVL aggregator DefiLlama shows that TON's total value locked (TVL) experienced a significant rise. Over the past month, TVL increased from $317.2 million to $402 million, reflecting a 26% growth. As more inverters lock their assets into the TON network and participate in decentralized finance (DeFi) protocols, the network is experiencing a surge in activity.

On the other hand, Nick warns investors and users of a possible scenario where TON price could plunge 8% amid downsloping resistance.

"If you're wondering what could go wrong with TON, I'll give you one scenario: TVL up 26% in a month, and a downsloping resistance that has sellers defending another round of selling since July '24. If it breaks, it'll be a sharp reversal. If it doesn't, the asset could correct for as long as 8% from current price."

The Toncoin price encountered another strong rejection from the resistance downsloping trendline, which began forming after a July 2024 high. This bearish development suggests that sellers are still active at higher levels, preventing the asset from breaking out of the downtrend.

The dynamic resistance could continue to apply selling pressure, potentially pushing the price down for a prolonged correction. If selling pressure persists, Toncoin price could drop to $4.5, with further downside risks leading to a decline toward $3.3.

Conversely, a bullish breakout from the overhead trendline will indicate the recovery trend gaining momentum and could drive a rally past $6 swing high to target $7.2 resistance.

Common questions and answers about Toncoin price:

1. Will Toncoin Price Recover to $6 After Stablecoin Supply on TON Surges 13x?

The growth in stablecoin supply on the TON blockchain could potentially drive demand for Toncoin as a utility token. However, the price may face resistance at the downsloping trendline, which could limit the recovery to around $6.

2. What is the potential downside for Toncoin in the near term?

If selling pressure continues at the downsloping resistance trendline, Toncoin price could potentially drop to $4.5, with further downside risks leading to a decline toward $3.3.

3. What is driving the current correction in Toncoin's price?

The bears drove the price down by 1.5% intraday, pushing it closer to a support break at $5 as Bitcoin price approached a $60k breakdown.

The above is the detailed content of TON Price Targets $6 Recovery as Stablecoin Supply on TON Blockchain Jumps 13x. For more information, please follow other related articles on the PHP Chinese website!