Key Takeaways:

Toncoin’s Telegram partnership fueled price rally has fizzled out.

TON price dropped nearly 16% since Sept. 20.

The token has formed a bullish technical pattern.

NEW DELHI (CoinChapter.com) — The Open Network’s native token, TON, burst into the top 10 crypto tokens (by market cap).

TON price rally resulted from news of the Telegram app debuting the TON blockchain-based self-custodial digital wallet. The partnership would help Toncoin get exposure to Telegram’s 800 million users. The TON wallet would support all the tokens associated with the Toncoin ecosystem.

TON is a Layer-1 blockchain platform that aims to facilitate cryptocurrency transactions using Telegram.

The TON Foundation introduced several partnerships and updates to expand its ecosystem following the integration. The team announced a partnership with Chainbase and Tencent Cloud as the TON Foundation tries to expand Web 3.0 adoption in the Asia-Pacific region.

Tencent Cloud would provide support for web applications and bots built within Telegram. Moreover, Tencent would provide “a dedicated amount of cloud credits and product discounts” for TON-based products.

Additionally, Chainbase would leverage its data indexing and querying experience to build the first data indexing product on TON.

We are committed to working closely together with Chainbase and Tencent Cloud to provide developers with the tools that they need to deliver transformative TON-based solutions to industries and users worldwide.

Justin Hyun, Head of Growth at TON Foundation, said.

TON Price Moving Inside Bullish Triangle Pattern

The Toncoin token price has formed a bullish technical pattern called the ‘Ascending Triangle.’

The pattern forms when an asset’s price movement allows for connecting the swing highs with a horizontal trendline and swing lows with a rising trendline. Volume helps determine if a breakout is strong.

Under ideal conditions, buyers would enter the market as the trendlines close the gap. As a result, the toke’s price would push above the horizontal resistance with heavy volumes.

Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. If the triangle pattern pans out, TON could, theoretically, rally 290% to reach the calculated price target near $8.54.

Multi-Month Resistance Rebuffs TON Rally

The Telegram integration likely brought buyers to the market, propelling TON prices to spike 62.5% in 9 days to mark a 2023 high near $2.6 on Sept. 19. However, the Toncoin token failed to stay above the key resistance level of $2.5, which has rebuffed multiple upside attempts by TON price (red arrows).

Since Sept. 20, the Toncoin token price has dropped by nearly 16% to reach a daily low of $2.17 on Sept. 25. Bulls seem to be defending the 20-day EMA (red wave) support near $2.08.

Meanwhile, TON’s 200-day EMA (green wave) seems poised to break below its 100-day EMA (blue wave) after the recent downtrend, forming a bearish pattern called the death cross. Traders usually consider the pattern an indicator of bearish market sentiment.

Hence, the death cross could result in the TON price breaching the immediate support level, which has arrested the token’s downtrend four times since Dec. 2022. Failure of the immediate support level might see the Toncoin price test the support near $1.81.

Conversely, a bounce from the 20-day EMA support could help the TON price rise to the resistance near $2.5. Breaking and consolidating above the immediate resistance might see the Toncoin price target the resistance near $2.8 before downside corrections pare gains.

The RSI for TON remained neutral, with a score of 57.66 on the daily charts.

The post Toncoin Price’s Telegram-Fueled Rally Fizzles Despite New Partnerships appeared first on CoinChapter.

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Filed under: Bitcoin - @ September 25, 2023 1:26 pm