Toncoin (TON) price rises to 11-month high after Telegram launches ‘Gifts’
Toncoin (Ton) prices hit a one-year high as crypto traders took stock of the many bright prospects in the market, including the recently launched “Gifts” on Telegram.
TON is now the 10th-largest cryptocurrency, with a market capitalization of more than $9 billion – the most ever.
Telegram CEO Ton bought $200,000
On November 6, Telegram announced a giveaway that allows channel owners to randomly distribute rewards among their followers.
A day later, Telegram CEO Pavel Durov used $200,000 worth of Ton Tokens to pay 10,000 Telegram users for Telegram Premium subscriptions.
In particular, Durov used Tons as a payment method in the Gift feature, at least for this case.
Ton prices have risen 19.5% since the launch of the Giveaways, indicating strong buying demand coupled with increased trading volume. As of November 8, the cryptocurrency touched the highest level in 11 months at $2.71.
Telegram is a major supporter of Toncoin, integrating a self-sustaining wallet into its platform. This has increased the adoption rate among Telegram's 700 million monthly active users.
Additionally, Toncoin's recent partnership with Blockchain.com and approval of a free trade zone at the Dubai International Financial Center served as a big signal for traders.
Toncoin price prediction
The Toncoin price chart suggests that it is overvalued from a technical point of view.
Specifically, Ton's daily relative strength index jumped above 70, an overbought zone. RSI's early jumps into overbought zones led to sharp price corrections.
Additionally, Ton's multi-month horizontal resistance range of $2.60–$2.70 will be tough to crack. This environment has fueled Toncoin Token's multiple reversal tests since December 2022, increasing the possibility of a bearish reversal in the coming days or weeks.
Related: A Wallet on Telegram Chooses Retention by Default to Ease Onboarding: Wallet COO
If this bearish scenario takes shape, the lower target appears to be at the Q1/2023 support line, near $2.22, a 17.5% drop from current price levels. This line is near Toncoin's multi-month uptrend line and the 50-day exponential moving average (50-day EMA; red wave).
Conversely, a critical close to the $2.60–$2.70 resistance range puts Tonnes in a position to challenge $2.92 as the next upside target.
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.
