Toncoin, the native cryptocurrency of the layer-1 blockchain The Open Network (TON), recorded a 2.18% surge during Wednesday’s trading session. This slight uptick followed the increasing number of active addresses on TON and broader market recovery as Bitcoin rechallenged the $108,000 mark. Amid the renewed network activity, the coin price is also nearing a major breakout from the accumulation trend led by the triangle pattern. Is a rally to $5 close?
Toncoin On-Chain Metrics Signal Bullish Divergence
Over the past three weeks, the token price has recorded a slow yet steady correction, decreasing from $3.04 to its current trading value of $2.85, resulting in a 16.1% loss. The bearish fallback can be attributed to broader market uncertainty amid geopolitical tensions in the Middle East.
Defying the price pullback, the number of active addresses on the network rebounded from 239.79k to a recent high of 991.35k, representing a 313% increase.
Simultaneously, the Sentora data shows the new addresses metric also bounced from 239.6k to 503.6k, projecting a 110% gain.
The renewed network activity could be driven by underlying fundamental growth, increased adoption, and anticipation of a recovery rally. It reflects rising engagement and onboarding, which often precedes a sustainable price rally.
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TON Price Poised For Triangle Breakout
Since mid-June 2024, the Toncoin price has experienced a steady downtrend, declining from its all-time high of $8.28 to the current trading value of $2.89, resulting in a 65% loss. While the bearish trend remains intact, the daily chart indicates a sideways shift in the price action above the $2.30 floor.
Over the past five months, the coin price has been resonating within two converging trendlines of the symmetrical triangle. Generally, this continuation pattern reinforces the prevailing trend, allowing it to regain momentum and extend the price in the same direction.
Thus, a breakdown below the bottom trendline will intensify the selling pressure and push the price to the $2 psychological level.
However, with the increasing network activity, the TON price could bounce back and breach the overhead trendline. A successful breakout will signal a change in market dynamics and support a rally to $4.2, followed by $5.
Also Read: What Does Historical Trend Say About Ethereum Price Target in July
