cointelegraph.com
Toncoin (TON) price reached its highest levels in almost a year as crypto traders assessed a slew of optimistic updates in its market, including the recent launch of "Giveaways" on Telegram.
In result, Tron (TRX) is now the tenth-biggest cryptocurrency with a market capitalization of over $9 billion — its highest ever.
Telegram CEO buys $200K of TON
On Nov. 6, Telegram announced Giveaways, a feature that enables channel owners to randomly distribute prizes among their followers.
A day later, Pavel Durov, the CEO of Telegram, used $200,000 worth of TON tokens to pay for Telegram Premium subscriptions for 10,000 Telegram users.
Notably, Durov used TON as a payment method within the Giveaways feature, at least for this specific case.
TON's price has rallied 19.5% since the Giveaways launch, coupled with a rise in its trading volumes, indicating strong buying interest. As of Nov. 8, the cryptocurrency had touched $2.71, its highest level in eleven months.
Telegram is the leading backer of Toncoin, having integrated a self-custodial wallet, TON Space, into its platform. That has boosted TON's chances of greater adoption among Telegram's 700 million monthly active users.
Furthermore, Toncoin's recent partnership with Blockchain.com and its approval in the Dubai International Financial Centre free trade zone have served as bullish cues for traders, as shown in the upside price reactions in the chart below.
Toncoin price prediction
The Toncoin price chart suggests that it is excessively valued from a technical standpoint.
Notably, TON's daily relative strength index has jumped above 70, an overbought region. The RSI's previous jumps into overbought zones have resulted in sharp price corrections.
Moreover, TON's multi-month horizontal resistance range of $2.60-2.70 will be tough to crack. This area has capped the Toncoin token's multiple upside attempts since December 2022, further raising the potential of a bearish reversal in the coming days or weeks.
Related: Wallet on Telegram chose custody by default to ease onboarding: Wallet COO
If this bearish scenario takes shape, the downside target to watch is at its Q1/2023 support line, near $2.22, down 17.5% from current price levels. This line is near Toncoin's multi-month ascending trendline and its 50-day exponential moving average (50-day EMA; the red wave).
Conversely, a decisive close above the $2.60-2.70 resistance range will put TON in a position to tackle $2.92 as their next upside target.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.