Key Takeaways:
- Toncoin might not be successful in the long run.
- However, the protocol’s native token, TON, shows signs of rallying exponentially.
- The token is forming higher highs — a bullish signal.
NEW DELHI (CoinChapter.com) — The Open Network (TON) does not have a very bright future, and Toncoin is “way overvalued,” according to crypto analyst and investor Jerry Banfield.
Can’t Find Toncoin Blockchain Data — Banfield
Investors often follow analysts for advice and to search for better investment opportunities. In this case, however, it would be wise to take Banfield’s advice with a grain of salt since he seems to be a VERY vocal supporter of Internet Computer (ICP).
Banfield shills ICP as if his life depended on it. One of the reasons the investor claimed that Toncoin did not have a bright future was the lack of transparency in TON transactions. Banfield had some difficulty in finding a Toncoin blockchain explorer.
Furthermore, the ICP maximalist noted that since Telegram, a non-decentralized entity, created Toncoin, the blockchain project is not essentially decentralized.
Banfield went on to state that Internet Computer had an answer to Toncoin’s Telegram association as well.
The ICP fan also claimed that Toncoin’s lack of uniqueness adds to the bearish cues against the project. Additionally, Banfield alleged that TON claimed PancakeSwap and some other crypto projects as part of its ecosystem even though those projects did not use the Toncoin blockchain.
Lastly, Banfield noted that the TON project was uni-dimensional and had a lot of competition, making it an undesirable option for the investor.
Interestingly, TON’s price gains since its launch leaves ICP in the dust. TON price is up 323% since its launch, while ICP price is down by 99% from its launch price.
It becomes clearer why Banfield is hell-bent on advising everyone to buy ICP tokens.
Is That an Ascending Triangle on TON Price Charts?
In another blow to Banfield, TON price formed a bullish technical pattern called the ‘Ascending Triangle.’
The technical pattern forms due to price moves that allow a horizontal trendline to connect the swing highs and a rising trendline to connect the swing lows. The price target for the pattern is equal to the triangltriangle’s at its widest part.
Thus, if the triangle pattern pans out, the TON price could rally over 55% to reach the pattern’s theoretical price target near $9.06.
Toncoin Restarts Bull Run
For the rally to continue, bulls would need to push the TON price above the immediate resistance near $2.45. Moreover, breaking and consolidating above the immediate resistance might help Toncoin price target the resistance near $2.64.
On the other hand, if the bears gain control of TON’s price action, the cryptocurrency token might drop to the 20-day EMA (the red wave) support near $2.09. A breakdown below the immediate support might force bulls to defend the 200-day EMA (the green wave) support near $1.85.
The RSI for TON remained neutral, with a value of 63.3 on the daily charts.
