TonCoin Price Prediction: TON Surges 18% $1.76

TonCoin (TON) has experienced a significant price increase over the past few days rising 18.3% between August 29 and 31. After a fierce between the bears and bulls that resulted in two doji candlesticks on August 24 and 25, the bulls finally had their way lifting off the layer 1 blockchain from the $1.427 level to set a swing high at $1.767.

TON’s recovery follows a period of recovery experienced in the broader crypto market, with the pioneer cryptocurrency Bitcoin trading briefly above $28,000. Let’s look at what is driving TonCoin’s latest uptick and where the price is likely to move over the next few days.

A Golden Cross To Push Toncoin Higher

At the time of writing, TON was trading at $1.7469, 2.52% up on the day and 21% up over the last 30 days. TonCoin was trading 45% higher than its price three months ago. Zooming out, it was largely bearish on the longer timeframes recording 33% losses over the last six months.

The price, however, looks resilient as it seeks to shake off the negative long term sentiments. One of the key drivers fueling this resilience is the strong support the token enjoys on the downside. Note that the recent rally saw TonCoin price rise above key levels, flipping them into support. These include the 100-day Simple Moving Average (SMA) currently sitting at $1.3784, and the 50-day and 200-day SMA both sitting at $0.47.

Note that the SMAs were about to send a call to buy TON. This could come in the form of a golden cross that will occur in the near term when the 50-day SMA crosses above the 200-day SMA. This means that TonCoin price is readying itself for a major rally.

Another factor driving the bullishness in the TON price is improving sentiment in crypto markets. For example, the entire cryptocurrency market cap is up 4.5% over the past week. As the tide in crypto lifts, TonCoin is likely to benefit from improving general sentiment.

Growing developer activity on the TonCoin network appears to be contributing to the crypto’s upside. The number of monthly active developers working on the proof-of-stake (PoS) blockchain has risen 40% since the start of the year. Accelerating developer interest is a positive long-term catalyst. This drives the demand for the token which, in turn, drives its price growth.

The confluence of these factors has renewed bullish momentum for TonCoin after a difficult summer for the cryptocurrency. As such the digital asset may rise from the current level to produce a daily candlestick above the $1.767 swing high. Key levels to watch on the upside are the $2.0 and $2.5 psychological levels.

TON/USD Daily Chart

On the downside, the Relative Strength Index (RSI) at 75 painted overbought conditions for TON, validating the current correction. As such, TON may retrace first toward the SMAs around the $1.47 demand zone and later to the $1.40 support wall. Losing the 100-day SMA at $1.43 would see the TonCoin price drop to revisit the $1.20 demand zone.