Toncoin Faces Key Support Test as Stablecoin Supply on TON Blockchain Surges 13x

Toncoin Faces Key Support Test as Stablecoin Supply on TON Blockchain Surges 13x

During Wednesday’s U.S. trading session, the cryptocurrency market exhibited a bearish trend, with Bitcoin nearing a critical $60k breakdown. Alongside other major digital assets, Toncoin faced downward pressure, posting a 1.5% intraday loss and approaching a crucial $5 support level. Investors are now watching closely to see if the bearish momentum will ease, potentially setting the stage for a reversal as the TON blockchain sees renewed growth in stablecoin supply.

Toncoin Eyes $6 Recovery Amid 13x Surge in Stablecoin Supply on TON Blockchain

Despite the legal challenges surrounding Telegram founder Pavel Durov, the TON network is demonstrating resilience.

According to crypto analyst Nick Garcia, citing data from Messari, the stablecoin supply on the TON blockchain has soared by 25% since Durov’s arrest, with a staggering 13x growth since April. This increase highlights a resurgence of interest in the TON ecosystem, despite the uncertainty linked to Durov’s legal issues.

An expanding stablecoin supply typically leads to increased liquidity and network activity, which could drive demand for Toncoin as a utility token for transaction fees and staking, potentially supporting a price rebound.

Data from DefiLlama shows that TON’s total value locked (TVL) has surged, rising from $317.2 million to $402 million over the past month—a 26% increase. This growth suggests more investors are committing their assets to the TON network and engaging in decentralized finance (DeFi) protocols.

However, Garcia also warns investors by drawing parallels to FTX’s collapse, advising caution in the current environment.

TON Price Faces 8% Drop Amid Downward Resistance

Toncoin price recently fell sharply from $6.06 to $5.06, marking a 17% decline in response to ongoing geopolitical tensions between Iran and Israel. This bearish move reinforces a pattern of reversals from a descending resistance trendline on the daily chart, suggesting sellers are still defending upper price levels.

The downward-sloping resistance, which has held firm since July 2024, could sustain selling pressure, potentially driving the asset lower toward $4.5. Further downside could push Toncoin to $3.3 if the sell-off intensifies.

Conversely, a bullish breakout above this trendline would indicate renewed momentum for recovery, potentially fueling a rally past the $6 mark and targeting the next resistance at $7.2.