Because of these 3 reasons, Telegram-linked Toncoin rose by 50% in May.
The price of the Telegram-linked Toncoin (TON) cryptocurrency surged roughly 50% month-to-date — including a 15% jump in the past 24 hours — to reach $7.10 on May 10, the highest level in three weeks.
Toncoin has outperformed the broader crypto market, with its value up 15 percent over the same period.
This performance indicates that although Toncoin's movements are somewhat in line with other leading cryptocurrencies, it has strong incentives that have enabled more significant growth. Let's take a closer look.
Notcoin airdrop increases tons of demand
TonCoin's price hike comes on May 16, ahead of NotCoin's game to earn revenue. NotCoin is a social clicker game that works within the Telegram app. To play, participants join the Notcoin bot and invite friends to join.
The main action in the game consists of repeatedly tapping the gold coin that appears on the screen, which allows players to earn a virtual currency called NotCoin. So far, more than 34.5 million players have participated in “mining” these NotCoin tokens.
The Notcoin team has confirmed an airdrop of the new native crypto, No, among 34.5 million Notcoin token holders. Starting May 16, this crypto will start working on the TON Blockchain – part of the Open Network's Layer 1 proof-of-stake (PoS) ecosystem.
Additionally, it will no longer be available for trading on leading crypto exchange platforms including Binance and Bybit on May 16.
The days leading up to the launch of NOT on the TON blockchain saw a significant increase in Total Value Locked (TVL) in the network. As of May 10, TVL was 40.58 million tons, an increase of 33% in May and a sevenfold increase so far in 2024, which emphasized the strong demand for Toncoin.
The increasing TVL is more compatible with the Tether (USDT) stablecoin integration on the TON blockchain.
Panther Capital's undisclosed investment
On May 2, Pantera Capital announced that it had invested an undisclosed sum in Open Network, citing its PoS ecosystem integration with messaging service Telegram in April as the main reason behind the investment.
The collaboration between Open Network and Telegram will make the former one of the largest crypto networks with 900 million monthly users and 36.7 million monthly downloads due to Telegram's high reach, Pantera Capital argues.
Related: New Telegram Mini-Apps Will Be So Convenient, Users Won't Know It's Crypto
Since the announcement, the price of Toncoin has increased by approximately 46%, which shows the bright reaction of the market to these developments.
Price per ton technical breakdown.
Toncoin's recent gains have been in the recovery that started after reaching a key support confluence, the uptrend, the 50-day exponential moving average (EMA) and the 0.618 Fibonacci retracement level.
This critical support zone is visualized on the chart with a red circle.
At the same time, the rebound in tonne prices is reminiscent of a similar price recovery in February following a daily relative strength index (RSI) drop to 37.45. During that period, the RSI also neared relative lows, coinciding with the 50-day and 200-day EMAs and the supportive confluence of the 1.0 Fibonacci retracement line.
In terms of fractal analysis, daily RSI and EMAs suggest that Toncoin's behavior around support levels is mimicking the previous price action.
Tonnes prices may increase by more than 20% in May.
Since May 10, the price of the ton has tested the 0.236 Fib line around $7.17 as resistance and moved up to the 0.0 Fib line at around $8.77, up about 22% from current price levels.
On the contrary, a pullback from the 0.382 Fib line resistance may have the 0.382 Fib line near $6.19 as the immediate target. A critical break below the 0.382 Fib line will put the price at risk of a decline to $5.40 in May, a level consistent with the higher trendline support and the 0.5 Fib line.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
