TON Coin (TON) and the Open Network blockchain are back in the spotlight, this time for positive reasons that have nothing to do with outages or price corrections.
On Sunday, September 15, the value of the USDT stablecoin issued on TON surpassed $1 billion for the first time. While the price of TON has not yet responded to this development, the increased liquidity could be a catalyst for the cryptocurrency to reach new highs. This analysis explores how increased liquidity could drive TON’s market performance.
Toncoin attracts more liquidity
According to Token Terminal, on August 31st, the USDT issued by Tether in TON was less than $800 million. The current surge to $1.03 billion shows that interest in TON Coin is growing.
According to BeInCrypto’s research, this capital inflow could help Telegram-based cryptocurrencies. The increase in stablecoin trading volume could increase user engagement on TON, and as user activity increases, demand for TONcoin could follow , which could lead to a price increase.
This milestone could give the altcoin a chance to bounce back to its previous high of $8.24.
Read more: 10 Best Altcoin Exchanges in 2024
The current price of TON is $5.55, down 32% from its June high. However, Santiment’s on-chain data shows a notable increase in the Average Dollar Investment Age (MDIA), a time-weighted metric that tracks the average age of each dollar invested.
A decrease in MDIA indicates that sleeping addresses are becoming active and supporting large volumes of movement, which could support short-term price appreciation. However, the recent surge in MDIA indicates that investment is becoming more stagnant, which could hinder short-term price growth for TON. Nevertheless, there is a strong chance that TON could see a significant rally in the medium term.
TON Price Prediction: Time to Retest June Highs
On the daily chart, BeInCrypto points out that TON is finding strong support at $5.20 , which has pushed the token price above the 20-day exponential moving average (EMA). The EMA measures trend direction, and when the price rises above it, it indicates an uptrend. Historically, this setup played a significant role in TON’s rally above $8 in June.
Currently , TON is facing resistance at $6 , a key supply zone. However, if demand continues to grow, TON could surpass this level and reach $8.32 by Q4 of this year.
Read more: 6 Best TON Coin (TON) Wallets in 2024
Conversely, if TON fails to break $6, the price could drop to $5.09.
