Toncoin’s BARR breakout sets stage for 40% TON price rally
2024.08.19 07:36
Toncoin emerged as one of the top-performing cryptocurrencies on Aug. 19, surging nearly 9% within the last 24 hours. This rally starkly contrasts the broader crypto market, which experienced a 3% decline over the same period.
TON/USDT versus total crypto market capitalization, daily performance chart. Source: TradingView
TON price in position for 40% rally by September
The sharp rise in the price of Toncoin (TON) is part of a technical breakout from a classic bump-and-run reversal (BARR) pattern.
The BARR pattern, which TON has followed closely in recent weeks, typically begins with a lead-in phase marked by a gradual decline. This phase is followed by a bump, characterized by a steep downturn, and a run phase, where the asset recovers and breaks above key resistance levels.
Toncoin entered the run phase on Aug. 18, confirming the breakout with a decisive move above the declining trendline that had previously limited its recovery.
TON/USDT daily price chart. Source: TradingView
Increased trading volume has supported the breakout, a crucial indicator of the strength behind the move. Additionally, TON is trading above its 50-day (red) and 200-day (blue) exponential moving averages (EMAs), both of which have started to turn upward.
If TON maintains its upward trajectory, it could target the $9.50 level by September, a 40% increase from its current price. This price point corresponds with the height of the BARR pattern’s bump phase and aligns with resistance observed in early July 2024.
The bullish setup receives further cues from the formation of what appears to be an inverse-head-and-shoulders (IH&S) setup, characterized by the formation of three troughs — the middle one being deeper than the other two — below a common resistance level called the neckline.
TON/USDT daily price chart ft. IH&S pattern. Source: TradingView
IH&S patterns are considered bullish reversal setups. They resolve when the price successfully breaks above the neckline and rises by as much as the maximum distance between the neckline and the pattern’s deepest point (called the head).
Applying this technical rule on the TON/USDT daily chart brings its upside target for September at around $10, closer to the target of the BARR setup.
Injective integration, TON Ventures launch to drive adoption
Beyond the technical setup, Toncoin’s recent rally has been fueled by numerous significant fundamental developments.
For instance, on Aug. 14, the TON Foundation launched TON Ventures, a $40 million fund supporting early-stage projects building on the TON blockchain. This initiative will likely attract a new wave of developers and projects to the The Open Network.
On the same day, decentralized finance protocol Injective announced its integration with the TON blockchain. This partnership allows TON-based assets to be bridged and utilized across Injective’s ecosystem, including in decentralized applications.
Related: Toncoin (TON) gains 10% after Binance Launchpool platform addition
These fundamental drivers have likely contributed to the recent surge in TON’s price, as they enhance the token’s utility and market accessibility.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
