• Toncoin price noted a 13% rally along with the rest of the market on August 29, bringing the asset to $1.70.
  • TON’s market capitalization is at $5.8 billion, only $1 billion away from dethroning Tron as the tenth biggest cryptocurrency.
  • Price indicators and the MVRV ratio sitting deep in the danger zone suggest this rally may not stick.

Toncoin price is riding the bullish wave thanks to Grayscale’s win against the Securities and Exchange Commission (SEC) in the lawsuit on Tuesday. Along with the rest of the altcoins, TON also witnessed a sizable increase, which is now placing it in competition with Justin Sun’s Tron.

Read more - “So long for crypto” - Bitcoin and digital assets might end as a fad if institutions allow

Toncoin price set to overtake Tron 

Toncoin price in the last 24 hours shot up from $1.52 to $1.71, noting a nearly 13% rally. This marked the highest single-day rise for the Telegram-developed cryptocurrency since the beginning of the year. 

As the altcoin’s value increased, its market capitalization grew as well, bringing it to $5.8 billion at the time of writing. Standing as the eleventh biggest cryptocurrency in the world, TON is looking to punch into the top ten crypto assets list. This would not be too difficult for the altcoin since the current tenth-biggest crypto token is only $1 billion bigger than TON.

This token would be Tron, created by Justin Sun, holding a market capitalization of $6.8 billion. Thus, if Toncoin investors choose not to sell for profit and instead hold on to their supply and support further increase, TON could surpass TRON rather easily.

But as mentioned above, for this to happen, the altcoin would need to find the support of its investors, who must refrain from profit-taking for a while. Any selling would trigger a drawdown and result in corrections for the asset. This could pull TON back down to $1.49, falling below which would send it to $1.16.

TON/USD 1-day chart

TON/USD 1-day chart

However, should it find more bullishness and sustain the rally, the Toncoin price would be looking to breach the next resistance level at $1.83. The chances of that happening are unlikely, looking at price indicators. 

Toncoin might end up falling sooner than expected

The Relative Strength Index (RSI) suggests that the cryptocurrency is overbought, above the 70.0 mark. The last time TON was in this zone was back in December 2022, and the altcoin noted corrections back then too.

Furthermore, the Market Value to Realized Value (MVRV) ratio is also currently deep in the “danger zone”. This metric measures the profit/losses of the investors and suggests their next potential move on the basis of their current standing. The “danger zone” here is the area beyond which investors stop accumulating and begin to sell for profits.

Toncoin MVRV ratio

Toncoin MVRV ratio

Historically, this has led to a decline in the prices, and TON’s MVRV ratio is presently at an eight-month high, making it susceptible to corrections very soon. Thus, Toncoin price might not have enough time to dethrone Tron and enter the top ten cryptocurrency list, but if it doesn’t slip on the charts too much, it could cement itself in the top 15 crypto assets list.

Read more - CRV price aims at 8% recovery as Whales rack up 20 million CRV in 24 hours

Like this article? Help us with some feedback by answering this survey:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

MANTA suffers 4% pullback after unlocking tokens worth $40 million

MANTA suffers 4% pullback after unlocking tokens worth $40 million

Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks. 

More Cryptocurrencies News

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30. 

More Ripple News

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000. 

More Bitcoin News

If Bitcoin restarts bull run, these altcoins are likely to explode Premium

If Bitcoin restarts bull run, these altcoins are likely to explode

If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis