Toncoin (TON), the native token of The Open Network (TON), has climbed over 5% in the past 24 hours, signaling renewed market demand. This rebound comes on the heels of a broader market downturn that saw TON decline alongside other major cryptocurrencies late last week. Amidst these small-scale movements, crypto analyst Ali Martinez notes the altcoin appears to be preparing for a major price breakout.
Toncoin Charts 40% Move As Triangle Hints At Breakout
In an X post on May 31, Ali Martinez shares an insightful take on the TON market. Using the 4-hour trading chart, the expert analyst highlights that TON’s price movement over the past four months has created a symmetrical triangle pattern hinting at the strong potential of a major price breakout.
The symmetrical triangle is a neutral chart pattern that reflects price compression due to the formation of higher lows and lower highs. Inherently, this chart pattern suggests neither the buyers or sellers are in affirmative control of the market, indicating there is much potential for a 40% price swing on either side.
Currently, Toncoin trades around $3.16 following the recent price bounce. If market bulls force a breakout from the upper boundary around $3.28, the altcoin is expected to trade as high as $4.55-$4.65. Meanwhile, a breakdown at the lower boundary around $3.10 could result in a market price between $1.80-$1.90.
Interestingly, TON’s relative strength index currently sits at 49.37 facing the upward direction which also suggests a neutral market while noting that bullish momentum is starting to build. A cross over 50 would provide bulls confirmation as TON makes its way to the overbought zone.
TON Market Overview
As earlier stated, TON continues to trade at $3.16 reflecting market gains of 5.12% and 4.62% in the past one and seven days, respectively. Telegram LLC which served as initial developers of TON and offers a deep integration with the cryptocurrency project has registered a series of positive developments contributing to these recent price leaps.
Most notably, Telegram founder Pavel Durov announced the platform’s partnership with xAI which would grant users in-app access to Grok, the prominent generative AI model. As part of this one year partnership, Telegram is to receive $300 million in cash and equity investment as well as earn 50% of all xAI revenue generated via the messaging platform.
With a market cap of $7.79 billion, Toncoin ranks as the ninth largest cryptocurrency in the world despite a year-on-year loss of 49.98%.
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