Toncoin emerged as one of the best performing cryptocurrencies on August 19, surging by around 9% in the past 24 hours. This rally stands in stark contrast to the broader cryptocurrency market, which experienced a 3% drop over the same period.
TON price could rise 40% by September.
The sharp rise in the price of Toncoin (TON) is the result of a technical breakout from a classic bump and run reversal (BARR) pattern.
The BARR pattern that TON has been following closely in recent weeks typically begins with a lead-in phase, marked by a gradual decline. This phase is followed by a bump phase, characterized by a steep decline, and a run phase, where the asset recovers and breaks through a key resistance level.
TONCOIN entered an uptrend on August 18, with a breakout confirmed as it clearly broke above the downtrend line that had previously limited its recovery.
The increased volume supported the breakout, which is an important indicator of the strength of this move. Additionally, TON is trading above the 50-day (red) and 200-day (blue) exponential moving averages (EMA), both of which are starting to rise.
If TON maintains its upward trajectory, it could target $9.50 by September, representing a 40% upside from the current price. This price range coincides with the height of the BARR pattern’s bump phase and coincides with the resistance observed in early July 2024.
The bullish setup takes additional cues from what appears to be an inverse head and shoulders (IH&S) setup, which is characterized by three lows forming below a common resistance level, the neckline, with the middle low being deeper than the other two.
The IH&S pattern is considered a bullish reversal setup. It is resolved when the price successfully breaks the neckline and moves up the maximum distance between the neckline and the deepest point of the pattern (called the head).
Applying this technical rule to the TON/USDT daily chart, the September upside target would be around $10, which is closer to the target of the BARR setup.
Injective Integration Drives Adoption with TON Ventures Launch
Beyond the technical situation, Toncoin’s recent rally has been fueled by several important fundamental changes.
For example, on August 14, the TON Foundation launched TON Ventures, a $40 million fund to support early-stage projects based on the TON blockchain. This initiative is likely to attract new developers and projects to The Open Network.
On the same day, decentralized finance protocol Injective announced its integration with the TON blockchain. This partnership will allow TON-based assets to be connected and utilized across Injective’s ecosystem, including decentralized applications.
Related: Toncoin (TON) Up 10% After Adding to Binance Launchpool Platform
These fundamental factors likely contributed to the recent surge in TON price by increasing the token’s utility and market accessibility.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.