Key Takeaways
- Toncoin price is up 50% in a month despite a jittery crypto market performance.
- The TON token now trends inside what appears to be a bull flag pattern.
- Interestingly, the number of active Toncoin followers on Telegram has plunged dramatically.
YEREVAN (CoinChapter.com) — Toncoin (TON) price rallied 7% to $1.88 on Sep. 7, continuing its broader upside trend against a relatively flat-cum-bearish crypto market. For instance, the TON price has surged nearly 50% in the last thirty days.
So, it is the time to secure profits or place more bullish bets on the Toncoin market. Let’s dwell.
Toncoin Paints Bull Flag, Golden Cross
Toncoin has painted a bull flag pattern characterized by the TON price’s downside consolidation trend inside a descending parallel channel.
A bull flag resolves if the price breaks above its upper trendline and rises by as much as the height of the downtrend preceding the pattern — aka “flag pole.” In the case of TON, the formation pins the target price at $2.36, or 30% higher than the current value.
Additionally, the TON daily chart has printed a “golden cross,” with its 20-day exponential moving average (20-day EMA; red wave) trending above its 200-day EMA (blue wave). Technically, the 20-200 crossover indicates a long-term bullish sentiment in the market.
Zooming into the hourly chart, TON breached the resistance at approximately 06:00 GMT but corrected downward in the following hour. However, it did not fall below the flag’s upper trendline, which means the bullish expectations still stand.
Risks, Meanwhile
TON traders should watch the on-chain metrics carefully before gauging the best market entry/exit points. For instance, Telegram’s number of active social users sharply declined on Sep. 7 after jumping three weeks in a row.
Given the coin’s affiliation with Telegram, it also constitutes a red flag. Toncoin was initially named “Telegram Open Network” (TON), but after facing legal headwinds, the team changed the name to “The Open Network” in 2020.
Meanwhile, in July 2023, Telegram CEO Pavel Durov confirmed that the social media platform owns Toncoin. Thus, the sharp avalanche in the number of active social users could harm the TON price.
