Toncoin price soars as cryptocurrencies crash, here’s why

Toncoin continues to surge, climbing to $3.60 and notching a 38% gain from its June low, as renewed investor interest and ecosystem momentum breathed new life into the Telegram-linked blockchain.

Toncoin (TON) token jumped for five consecutive days, reaching a high of $3.60, up by 38% from its lowest level in June. At last check Saturday, it hovered at around $3.54. This surge pushed its market capitalization to over $3.7 billion.

TON price jumped after the biggest decentralized application in its ecosystem, STON.fi, raised $9.5 million in funding on July 30, a sign that investors are optimistic about its platform. It raised these funds from Ribbit Capital and CoinFund to fund its growth.

DeFi Llama data shows that STON handled over $6.7 million in volume in the last 24 hours and $113.33 million during the previous 30 days.

TON price also jumped as its transactions soared. Nansen data shows that Ton Blockchain was the third-fastest growing blockchain in the last seven days, as its active transactions jumped by 32% to 3.8 million.

Its fees rose by 52% in the same period, while the active addresses jumped by 5%. These numbers mean that the network is doing well among users.

The token also jumped after the TON Foundation and Kingsway Capital Partners joined to raise $400 million to create a treasury company to accumulate Toncoin.

The new, unnamed company will aim to replicate what other firms have done in the past few years, as they seek to build on the success of Strategy and Metaplanet.

Toncoin price technical analysis

TON price chart | Source: crypto.news

The daily chart shows that the TON price also jumped after forming a double-bottom pattern at $2.722. This is a typical pattern characterized by two lower levels and a neckline, which, in this case, was at $3.5812. It is one of the most common bullish reversal patterns.

The price of Toncoin jumped above the 23.6% Fibonacci Retracement level, while the 50-day and 100-day moving averages are about to cross each other. Therefore, the token will likely continue rising as bulls target the key resistance level at $4.77, the 50% retracement level.