- Toncoin’s price action has lacked a trend over the past two weeks.
- The lack of strong selling in recent weeks showed there was potential for a recovery.
The Open Network [TON], the open-source decentralized L1 blockchain, saw increased demand for its native cryptocurrency Toncoin on the 8th of July. The token surged 12.1% in two hours, experiencing a high trading volume.
Source: TON/USDT on TradingView
Despite the short-term gains, the 12-hour chart showed bearishness reigned. The token has been unable to breach the local highs at $3 and $2.92, marked in green.
The recent rally was also forced to retrace below the $2.92 mark at the time of writing. The CMF recovered to -0.01, but it did not exhibit sustained, high demand for Toncoin.
Similarly, the A/D indicator has also been falling over the past week. Together, the volume indicators suggested that demand needed to be consistent before TON could reclaim the $3 resistance.
Traders looking to go long can enter positions once the $3 level is flipped to support.
Why is TON surging in value?
The Open Network announced a new pathway to UAE residency. It offered 10-year Golden Visas to applicants who staked $100k in TON for three years, and also paid a $35k one-time processing fee.
The applicants would retain control of their assets. The program also promised an annual yield of 3%-4% on the staked assets.
In a post on X, Coingecko co-founder Bobby Ong observed that the crypto pathway was an amazing partnership story.
“The entry is 5x lower than an equivalent real estate / FD investment and will certainly get the attention of whales to take a look at TON and consider this as an option.”
The $2.7-$2.8 area has been a significant support since April. Further south, the $2.5 level was another psychological support that had been respected earlier this year.
The UAE Golden Visa announcement could spur whales to buy Toncoin at these support levels and could instigate an uptrend in the coming weeks.
The coin days destroyed is a metric used to understand spending activity, especially from long-term holders. A higher value of CDD implies that older, dormant Toncoin was moved, usually for selling purposes.
An examination of the coin days destroyed showed that the most recent, sizeable wave of selling came in early May. Since then, though the price has repeatedly tested the $2.7 support, selling pressure has been weak.
Combined with the price action and the news development, it appeared likely that Toncoin prices might surge higher here on.
