The recent price action of Toncoin has shown a lack of a clear trend over the past couple of weeks. However, the absence of strong selling pressure indicated the potential for a recovery in the near future.
On the 8th of July, the Open Network [TON] experienced a surge in demand for its native cryptocurrency, Toncoin. The token saw a 12.1% increase in value in just two hours, accompanied by a significant rise in trading volume.
Despite the short-term gains, the 12-hour chart displayed a bearish trend as the token struggled to surpass the local highs at $3 and $2.92. The recent rally was forced to retrace below the $2.92 mark, indicating a lack of sustained demand for Toncoin. Volume indicators like the CMF and A/D indicator also suggested the need for consistent demand before the token could reclaim the $3 resistance level.
Traders looking to enter long positions should wait for the $3 level to flip into support before making any moves.
The surge in Toncoin’s value can be attributed to the announcement by the Open Network regarding a new pathway to UAE residency. The network offered a 10-year Golden Visa to applicants who staked $100k in TON for three years and paid a $35k processing fee. This program promised an annual yield of 3%-4% on the staked assets, attracting attention from potential investors.
The $2.7-$2.8 support level has been significant since April, with the $2.5 mark serving as another psychological support level. The UAE Golden Visa announcement could potentially prompt whales to purchase Toncoin at these support levels, leading to a possible uptrend in the coming weeks.
The coin days destroyed metric, which indicates spending activity by long-term holders, showed that despite repeated testing of the $2.7 support level, selling pressure has been minimal since early May. Combined with the recent price action and news developments, it is likely that Toncoin prices could see a further surge in the near future.
In conclusion, Toncoin’s recent price movements and the news surrounding the Open Network’s partnership with the UAE for Golden Visas have set the stage for potential growth in the token’s value. Traders and investors should closely monitor key support levels and market dynamics to capitalize on possible opportunities in the market.