DeFi
How low inflation could fuel a bullish rebound
On Monday, the cryptocurrency market witnessed a sudden decline as Bitcoin registered a 2.5% drop during the US trading session. However, the sell-off had a limited impact on the altcoin market as the recent launch of the Ethereum Spot ETF boosted the overall market sentiment. Toncoin price analysis showed a 1.5% decline to $6.85 towards the multi-month support of the triangle pattern.
Toncoin Price Analysis: DeFi Growth and Low Inflation Signal Stability
Toncoin Price | Tradingview
The cryptocurrency market has been on a fresh recovery trend since the second week of July, as Bitcoin bounced back above $60,000. While most major altcoins have benefited from this bullish recovery during the June correction, the Yourcoin traded laterally.
Over the past two months, TON coin has been resonating with two converging trendlines indicating the formation of the triangle pattern. These trendlines are the major dynamic resistance and support heavily influencing this TON price movement.
With a weekly loss of 6.5%, Toncoin price analysis shows a drop to $6.85, while the market cap was $17.25 billion. If the supply pressure persists, this coin could drop another 3.6% to retest the lower trendline of the triangle.
This support intact since May 2024 can help TON buyers recover the bullish momentum.
According to The Block Pro, TON’s DeFi sector has seen substantial growth, with Total Locked Value (TVL) from $13.8 million to $758 million. This increase is driven by platforms like DeDust and the support of Telegram’s 900 million users, which aim to lower the barriers to entry with “mini-apps.” The sharp increase in TVL indicates robust adoption of TON’s DeFi platforms and growing trust in the network.
3/ In 2024, the annual inflation rate of the TON network is 0.62%, with the circulating supply having increased by approximately 9% since the beginning of the year, reflecting significant growth in staked or locked tokens. pic.twitter.com/952RPntRkM
— The Block Pro (@TheBlockPro__) July 23, 2024
In 2024, the annual inflation rate of the TON network is 0.62%, with the circulating supply increasing by 9% since the beginning of the year. The low inflation rate combined with increased staking activity underscores the network’s potential for sustainable growth and stability.
Thus, a potential bounce from the triangle pattern would push Toncoin price to $8 and challenge the upper trendline. A successful break of the upper boundary would intensify the bullish momentum and could lead the recovery rally to $8.5, followed by $9.5.
Technical indicator
- EMA: The 100D Exponential Moving Average coinciding with the triangle support creates a suitable reversal region for coin buyers. Moreover, the price holding above the 200D EMA accentuates the overall trend as bullish.
- RSI: The daily life relative strength index The drop in the slope to 40% suggests that sellers are strengthening their grip on this asset in preparation for a triangle breakout.
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Frequently Asked Questions
Total Value Locked (TVL) represents the total capital held within a DeFi (decentralized finance) platform or protocol.
Staking activity refers to the process of holding and locking a certain amount of cryptocurrency in a wallet to support the operations of a blockchain network.
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and direction of price movements. It ranges from 0 to 100 and is typically used to identify overbought or oversold conditions in a market.