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Toncoin (TON) Price Could Increase by 70% in the Near Future, What Drives It?

The Toncoin (TON) price is breaking out of a long-term pattern where price action has been consolidating for several months.

The breakout from this pattern could lead to a significant rally in the near future.

On Wednesday, the privacy-focused messaging giant Telegram announced that they would share advertising revenue with users through the TON blockchain, starting from March 2024.

Long-Term Pattern

The Toncoin (TON) price has been trading within a symmetrical triangle since June 13, 2022. Both the support and resistance lines of the pattern have been tested multiple times, confirming the validity of the pattern.

During the week of September 18 to 24, 2023, the TON price was rejected by the triangle’s resistance line (red arrow) and has been decreasing since then.

However, the TON price has held above the 0.5-0.618 Fib support zone of the previous rally and is currently breaking above the triangle. As the 0.5-0.618 Fib zone often serves as the end point of corrections, a bounce from this zone suggests that the uptrend will continue.

The weekly RSI rebounded from level 50 (blue arrow) and trending upward, supporting the potential breakout.

If the TON price successfully breaks above the triangle this week, it could rise to $4.5. This target is found by connecting the triangle’s height at the breakout point and marks a 68.75% increase from the current price.

TON/USDT weekly chart . Source: TradingView

Short-Term Outlook

The TON price has broken above the horizontal resistance zone at $2.4 and confirmed it as support yesterday (green arrow). This indicates a shift in short-term sentiment from selling on rallies to buying on dips.

The 4-hour RSI has entered the overbought zone and is trending upward, suggesting that the bulls have gained full control of the market.

Therefore, the TON price could rise to its highest level on February 28 at $2.95 in the coming days.

TON/USDT 4-hourly chart . Source: TradingView

Conclusion

The most likely prospect indicates that the TON price will continue to rise in the near future. The nearest target is $2.95, and further upside potential extends to $4.5.

The bullish outlook may be invalidated if the price breaks and sustains below the $2.4 zone on the 4-hour time frame.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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