Toncoin Price Drops Slightly Amid Consolidation, Eyes $8 Breakout

Toncoin Price Drops Slightly Amid Consolidation, Eyes $8 Breakout

Toncoin experienced a slight 0.2% decline during Wednesday’s U.S. trading session, settling at $5.2. This minor drop resulted in a neutral candle formation on the daily chart, indicating that the consolidation phase, which began in early October, remains intact. However, increasing USDT transactions on the TON network, coupled with a potential bullish reversal, suggest that the altcoin may be gearing up for a breakout towards the $8 mark.

Can USDT Adoption on TON Drive Toncoin to Break $8?

According to CryptoQuant analyst Maartunn, the USDT stablecoin has seen significant growth on The Open Network (TON) blockchain. USDT operates as a Jetton on TON, which is similar to Ethereum’s ERC-20 token standard. Over the past 30 days, USDT has become the most widely used token on the platform, with over 4.5 million transactions recorded.

Just last month, the value of USDT transactions on TON surpassed $300 million. This surge highlights the increasing attractiveness of the TON blockchain for stablecoin transactions. As the network handles these transactions efficiently and securely, it underscores a robust infrastructure that could boost demand for Toncoin, the platform’s native cryptocurrency.

At the time of writing, Toncoin is trading at $5.24 with a market capitalization of $13.23 billion.

Whale Accumulation and Declining Exchange Supply Signal Potential Rally

Data from Santiment shows that the percentage of Toncoin held by top addresses has risen from 23.6% to 28.07%. This accumulation by large holders indicates growing confidence in the long-term potential of TON. Historically, whale accumulation has often preceded major price rallies and sustainable recoveries.

Additionally, Toncoin’s supply on exchanges has dropped from 2.54 million to 1.68 million since September. This reduction in exchange-held assets suggests that investors are moving their holdings to cold storage or private wallets, signaling a shift toward long-term investing rather than short-term selling or trading.

With increased whale activity and reduced sell-off pressure, Toncoin appears primed for a potential rally.

Toncoin on the Verge of Breakout Amid Reversal Pattern

In recent weeks, Toncoin has consistently traded above the crucial $5 level, maintaining stability despite market uncertainties. While the daily chart shows indecision between buyers and sellers, lower time frames reveal the formation of an inverted head and shoulders pattern—a bullish signal indicating that buyers are actively defending lower price levels.

The Toncoin price is currently just 2.22% away from testing the $5.3 neckline resistance. A successful breakout would likely generate increased buying momentum, pushing the asset to $6, and potentially towards $8.2.

However, failure to overcome the resistance trendline, which has been intact since July 2024, could see sellers regain control, leading to a possible correction.