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Toncoin (TON), the native token of The Open Network blockchain, has recorded a massive spike within the hour. According to CoinMarketCap data, TON surged by a significant 6% in price action, rising to $3.58 within the last 60 minutes.
Reasons behind Toncoin’s rally?
TON jumped from its day low of $3.41 to its current level in what appears to be a bullish rally. Some analysts have suggested that TON’s recovery coincides with bullish sentiments surrounding the French authorities' release of Pavel Durov.
Tomiwabold OlajideNotably, on March 15, French authorities handed Durov his passport. The development meant Durov could leave France at his discretion despite ongoing investigations.
The Russian-born founder and CEO of Telegram immediately traveled to Dubai after months of legal restriction in France. "It feels great to be home," Durov stated after his return to the Gulf state.
Notable figures such as Vitalik Buterin, Tether CEO Paolo Ardoino and Elon Musk expressed concerns over the arrest last year.
The crypto market's reaction to Durov’s newfound freedom has contributed to the positive development around Toncoin. Many have started speculating on the future outlook of Toncoin and the impact of external factors on its price trajectory.
Interestingly, following the past week’s events, TON’s Open Interest registered a 67% uptick. This indicates renewed interest from the asset's holders. The current spike in price appears to emphasize this confidence on the part of TON investors.
Can Toncoin maintain its rally?
As of press time, TON's price was changing hands at $3.60 despite significantly dropping its trading volume in the last 24 hours. TON’s trading volume is down by 31.24% to $259.03 million, but market observers expect a possible reversal if the price remains on an upward trajectory.
Godfrey BenjaminAnalysts have projected between $2.40 and $3.00 as a crucial support zone for TON to retest higher prices. They opine that if the coin can ride current sentiment, it could begin a climb to $6.
However, it first has to break some key resistance levels around $3.80 and $4.50. This could help TON recover from the recent 96% loss in address profitability.
Vladislav Sopov
Dan Burgin