USDT Adoption on TON May Propel Toncoin Price for $8 Breakout

Toncoin price showed a modest 0.2% loss on Wednesday’s U.S. trading session, trading at $5.2. The slight downtick forms a neutral candle

CryptoQuant analyst highlights the increasing popularity of USDT stablecoin on The Open Network (TON), which could propel demand for the native cryptocurrency, TON.

According to the latest analysis, USDT has emerged as the most widely transacted Jetton (TON’s equivalent of ERC-20 tokens) on the TON blockchain over the past 30 days, registering an impressive total of 4,542,418 transactions.

This level of activity far surpasses that of other popular tokens, such as BTC, ETH, and BNB, and underscores the substantial demand for USDT transactions on TON.

Moreover, to put this into perspective, just a month ago, USDT transactions on the TON blockchain reached a staggering total of over $300 million.

Highlighting the appeal of the TON blockchain for stablecoin transactions, which are typically known for their high volume and low volatility, as compared to other cryptocurrencies.

The capacity to securely and efficiently host these transactions is a hallmark of a robust network, which should translate into increased demand for its native cryptocurrency, TON.

1. What could drive Toncoin's price to break out toward $8?

Several factors could contribute to a breakout in the Toncoin price toward the $8 price level.

Firstly, the sustained presence of buying pressure at lower price points, as evidenced by the formation of an inverted head and shoulder pattern on the lower time frame charts, bodes well for a bullish reversal.

Secondly, the broader market strength and resilience, particularly among altcoins, could amplify the buying momentum and propel the asset to higher price targets.

Finally, the scarcity of Toncoin in the market, due to its limited total supply and exchange availability, could exacerbate the price sensitivity to buying pressure, potentially leading to a swift and substantial price appreciation.

2. What is the significance of the drop in Toncoin supply on exchanges?

The decrease in Toncoin supply on exchanges, as highlighted by Santiment, is a noteworthy development that could bode well for the asset's price trajectory.

This metric showcases the tendency of investors to move their Toncoin holdings off exchanges and into cold storage or private wallets, which is often indicative of a shift toward long-term holding rather than short-term trading or selling.

As a result, this trend could contribute to a reduction in selling pressure and bolster the asset's price.

3. What technical patterns suggest a potential Toncoin price rally?

On the lower time frame charts, the formation of an inverted head and shoulder pattern could be suggestive of a potential price rally for Toncoin.

This bullish reversal pattern is characterized by three troughs, with the middle trough being the lowest and the outer troughs being higher, and is often indicative of buying pressure at lower price levels.

A breakout from this pattern, with high volume confirmation, could propel the asset to targets of $6, followed by $8.2.

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