Toncoin price forecast: TON technical analysis and trading guide

If you are a regular crypto trader, you will probably have come across Toncoin – the native cryptocurrency used on the Open Network platform. As a coin that once had the name Gram and originally aimed to streamline cryptocurrency payments directly on the Telegram platform, plans eventually fell apart due to the intervention of regulators. Fortunately, rather than letting the open source project fall out of relevance, the TON Foundation revived the project and made it The Open Network we know today.

Want to find out how you can take advantage of the momentum that Toncoin has? From understanding existing Toncoin price predictions to performing some basic technical analysis of Toncoin, here is everything you need to know when trading TON.

What is Toncoin (TON)?

Toncoin is the native utility coin that powers the TON blockchain and was launched by the TON Foundation. TON’s uses include network operations, staking, chain management and payments. TON was developed with the goal of putting crypto in every wallet, as the TON Foundation refines the TON blockchain until it is able to support the needs of millions of users.

Toncoin Updates: Roadmap Progress

In addition to TON technical analysis and understanding how TON trades in the crypto market, it is also important to be aware of the project’s potential catalysts.

Since December 2022, the audit platform CertiK and TON have become partners. This means that CertiK has been auditing smart contracts and services offered by TON ever since. Overall, this gives The Open Network the security and credibility it needs to stand out in the crypto space.

Aside from security audits, TON has made a lot of progress in 2023. According to TON’s roadmap, the entity has reached nearly 20 milestones. This includes the following:

With 2023 drawing to a close, the TON Foundation is keen to end the year on a positive note. This includes a scalability and speed showcase of the TON blockchain, and building ETH, BNB and BTC bridges to improve cross-chain interoperability.

TONS of price movements

When we examine the yearly performance of TON as a cryptocurrency, Toncoin is trading in a range between $0.96 and $2.71 for the better half of 2023. YTD) gains of 57% and 113% respectively, TON posted YTD gains of nearly 24%.

At the beginning of 2023, TON had a bearish outlook as it took a sudden drop in May 2023. However, TON eventually turned things around, as catalysts like Telegram integration may have built bullish expectations for crypto traders. TON’s price has risen greatly since mid-2023. With TON’s last traded price of $2.69 as of November 8, 2023, we can see TON appreciating new annual highs as the TON Foundation team continues to work to improve the fundamentals of Toncoin.

TON of technical analysis

It is important to note that in the blockchain space, any cryptocurrency that is not built in the form of stablecoins, such as TON, can experience a high level of volatility. While it may be difficult to accurately predict TON’s price in the near future, we can use technical analysis and trading indicators to create a trading plan and come to our own conclusions about where TON is headed. In the example below, we will use popular technical analysis indicators such as the simple moving average and the relative strength index while referring to TON’s price as of November 8, 2023.

Simple Moving Average (SMA)

As one of the main technical indicators that crypto traders use for trend analysis, SMA refers to the average price of the asset over a specified period of time. Looking at the chart above, the specified period will be 50 days and 200 days respectively. Instead of just referring to them for TON’s average price, what crypto traders will take particular note of is the amount of crossovers that occur. When the 50 SMA crosses below the 200 SMA, a death cross appears, indicating to traders that there is an exhaustion of bullish momentum for TON. This was the case in May 2023, as TON’s price fell as low as $0.96 before gradually recovering.

On the other hand, when the 50 SMA crossed above the 200 SMA in September 2023, TON’s price began to appreciate as the SMA crossing indicated a bullish rally. With the 50 SMA well above the 200 SMA, we are likely to see TON’s price continue to rise in the long term, based on the analysis of simple moving average crossovers.

Relative Strength Index (RSI)

In short, RSI is a lagging indicator that measures the magnitude of recent price changes to analyze overbought or oversold conditions. Most crypto traders use it as a momentum indicator to determine the general trend of the cryptocurrency. RSI values ​​above 70 are typically a sign that an asset is overbought and may experience a correction in its value. Conversely, an RSI of 30 or less indicates that an asset is currently oversold and undervalued by crypto traders. In TON’s case, the RSI sat at 77.84 in early November 2023, implying that the recent Toncoin rally has a lot of bullish momentum behind it. This could result in a drop in TON’s price as crypto traders lock in their profits while TON’s RSI indicates that Toncoin is overbought.

Like the current case of Toncoin being overbought, TON faced two similar incidents in 2023, where TON’s price suffered a drop when its RSI was above 70. Although past performance is not an indicator of future performance, this trend may be something to take note of if you intend to trade TON.

Toncoin price predictions

If you are a new crypto trader who is not familiar with the price action and fundamentals of TON, you will probably look out for Toncoin price predictions as they can give you a rough gauge of the overall sentiment towards TON.

As with all analyst price predictions, these should be taken with a grain of salt as they are subjective opinions that may carry a certain level of bias that may be influenced by current crypto market sentiment. For all analyst perspectives presented in this section, we will look at Toncoin price predictions for 2023 and 2025 as of November 8, 2023.

From the bulk of these predictions, we can see that analysts are largely positive with their TON price predictions, as more than half expect around a 10% upside for Toncoin for the remainder of 2023. Also, based on analysts’ Toncoin price predictions for 2025, the majority predict a multiple of the TON’s last traded price today. This likely means that analysts see a large upside for Toncoin with limited downside for both bull and bear cases.

Is it worth trading Toncoin?

There is a lot to consider before deciding to trade TON, and it is wise to take a balanced view during due diligence. Aim to analyze a wide variety of information to make sure you are fully informed about the project and its prospects before committing funds.

If you’re bullish on the future for TON, you’ll probably want to keep track of its Telegram integration. As previously mentioned, the Telegram partnership with the TON Foundation is one of the main reasons for Toncoin’s recent bullish rally. While promotions and marketing campaigns are still in their early stages, Telegram has been actively pushing the use of TON across its messaging app. From claiming that TON blockchain is the fastest in the world with its lightning-fast 100,000 TPS in sponsored Telegram messages to paying for a Telegram Premium membership with Toncoin, we are likely to see more avenues for cooperation in the near future.

With over 800,000,000 monthly active users, Telegram represents a key channel for mass adoption and distribution of Toncoin. As TON gains exposure to this growing Telegram user base, we may see a gradual increase in adoption and activity on the TON blockchain over time.

If you are bearish on Toncoin’s future and want to trade it, you may want to consider the following concerns that users have about TON. First, the TON Space wallet widely available on Telegram is marketed as a self-sustaining digital wallet. However, there is no need for users to store their private keys for their TON Space wallet as it has been abstracted away for convenience and lowering the barrier to adopting TON Space.

Does this imply that TON Space is not a proven non-custodial wallet? Crypto skeptics are quick to point out “not your keys, not your coins”, so this concern is definitely something bearish traders should take note of down the line. Another point that TON critics raise is that the TON blockchain is not compatible with Ethereum Virtual Machine. This could probably pose a problem for developers in the future, as solidity contracts that run like second nature on the Ethereum blockchain cannot be easily integrated on the TON blockchain.

Final words and next steps

As with all crypto price predictions and analyst commentary, it is crucial to do your own research before committing to a trading plan and executing trades. In the case of TON, while analysts see some upside remaining in the near term, it certainly comes with its own set of risks.

Technical indicators such as RSI are already showing that TON is overbought and needs a short-term correction before further contraction. With catalysts like the Telegram partnership and cross-chain bridges being built with other layer-1 blockchains, the future of Toncoin does look bright. However, only time will tell if altcoins like TON can survive in today’s macroeconomic environment where crypto traders may favor safer plays that offer more certainty in financial gains over time.

Want to learn more about TON? Get started by visiting our Toncoin pricing page today for more information.

Frequently Asked Questions

Who owns Toncoin?

Telegram founders Nikolai Durov and Pavel Durov were the original creators of TON when they released the first version of the Telegram Open Network White Paper. However, Telegram was forced by regulators to cease active development of TON. An open source community then continued to maintain the network and build further functionality onto it before the project was renamed The Open Network in 2022.

How many TONS will there ever be in circulation?

The maximum total supply of Toncoin (TON) is 5,000,000,000.

Is Toncoin on the Ethereum Blockchain?

Toncoin is a layer-1 blockchain that exists independently of Ethereum. However, the code is based on Ethereum smart contracts and features sharding support.

What is Toncoin used for?

Toncoin is designed to create an ecosystem and can be used to sustain decentralized applications. In addition, TON also fulfills the role of transaction processing, chain management, cross-chain transactions and staking.