- Toncoin, emerging from Telegram’s ambitious TON initiative, is now independent.
- Despite a $1.39 trading price and a recent 22% surge, TON faced resistance around $1.50 due to regulatory concerns and cyberattacks.
Toncoin has garnered considerable interest within the blockchain sphere. Emerging from Telegram’s ambitious initiative, the TON (Telegram Open Network), it has subsequently developed an independent identity following Telegram’s exit.
Toncoin (TON) currently functions as the TON network’s primary token. The acronym “TON” stands for “The Open Network,” representing a decentralized foundational blockchain system, often referred to as a layer-1 structure in the context of blockchain ecosystems.
The creators of TON designed it with scalability as a central focus, and many believe it can handle a massive user base, potentially numbering in the billions. This scalability stems from the utilization of a technique called blockchain sharding, which integrates multiple specialized blockchains into a unified network.
These individual blockchains cater to distinct functions like governance and transaction recording. The TON system is structured into master, shard, and work chains to facilitate this approach.
By distributing the processing load across different chains, the TON network ensures that no single chain becomes overwhelmed with an excessive backlog of unprocessed blocks. Notable blockchain networks such as Zilliqa have also embraced sharding, and Ethereum is actively considering its implementation.
The TON network adopts the proof of stake (PoS) consensus mechanism to validate transactions. In the PoS model, validators, often referred to as nodes, validate transactions by participating in a process called staking.
This approach is known for its energy efficiency, making it a more environmentally friendly alternative compared to the proof of work method employed by Bitcoin. As a result, numerous blockchain networks are transitioning from proof of work to proof of stake to align with this more modern and sustainable protocol.
TON’s Trading Range
Currently, TON is changing hands at $1.39, demonstrating a noteworthy surge of 1% within the past 24 hours. TON’s recent price surge over the past week is equally remarkable, reflecting a remarkable increase of 22%.
Recently, the value of Toncoin experienced a significant breakout, breaking free from a month-long period of consolidation. Throughout this consolidation phase, prices exhibited a range-bound and consistent trading pattern, fluctuating between $1.31 to $1.49 with limited precision.
Toncoin Demonstrates Resilient Characteristics
During the consolidation phase, multiple instances revealed Toncoin’s attempts to surpass the $1.50 threshold, potentially indicating a prospective upward trajectory. Despite these endeavors by bullish market dynamics, the price could not surpass the $1.50 mark and concluded below it.
The persistence of these unfavorable factors implies a sense of prudence among traders and investors. The unwavering resistance from bears suggests a prevailing sentiment that the market may not be ready to sustain an extended ascent beyond $1.50 at this juncture.
Possible Reexamination of Resistance Threshold
Even though the project initially centered around Gram, its inherent digital currency, it encountered difficulties when the US Securities and Exchange Commission highlighted Telegram’s omission to officially register a significant initial sale of $1.7 billion of Gram tokens.
The concerns from regulators temporarily halted the sales of Gram, and the undisclosed offering eventually resulted in a legal setback. At the same time, a series of cyberattacks overshadowed the appeal of TON.
In the meantime, based on the current market structure, there is a potential that the value of Toncoin might reevaluate the resistance point at $1.49, provided that the bullish momentum manages to drive prices beyond the former support level, now acting as resistance, at $1.31.
For this scenario to hold any credibility, it would necessitate closing a candle above the $1.31 mark. Conversely, if the TON value cannot breach the $1.31 mark, it might regress toward the existing support level of $1.17.
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