Top Weekly Gainer Faces 17% Correction

Toncoin is currently the best-performing crypto in the weekly charts among the top 100 projects. The token has gained 28.9% over the last seven days and 57.1% over the previous month. Although they are no longer connected, the crypto project remains closely linked to the Telegram messaging app, which is very popular in the crypto community.

At press time, Toncoin had been able to recover from a 3-month drawdown that lasted from May 2023 to August 2023. Its current value of $1.88 is almost a 100% recovery from its low point of $0.96 registered on June 12. However, with immediate resistance at $1.985, there is a potential for a correction over the next few days. Immediate support for TON lies around $1.523, which was tested as resistance a few times during the drawdown period. With the Relative Strength Index or RSI currently in an overbought region, buying pressure might subside going forward for the asset. The VPVR indicator also suggested a lack of strong trading volume at the current price range.

Also Read: Bitcoin, Tether Payments Goes Live on Telegram Through Wallet Pay

Why is Toncoin surging, and will it continue?

TON’s current rally could be attributed to a rise in the popularity of Telegram bots. In recent weeks, Telegram bots have become a hot topic within the crypto space. Moreover, there has been a spike in TON’s social dominance, which has a correlation with the rise in popularity of Telegram-affiliated bots. TON’s social dominance has spiked by 320% since the beginning of H2, 2023.

One of the best-performing Telegram-Bot tokens is UNIBOT. The token jumped from $115 to its all-time high of nearly $240 before heading down again. MoonBOT (MBOT) is another Telegram-Bot token that has seen a significant rise. Between Aug. 4 and Sept. 3, the token rallied by almost 125%, and its price went from $2.4 to $6.12.

Also Read: Telegram Bot Enables Bitcoin and other Crypto Payments via Toncoin

However, whether or not Toncoin (TON) will continue to rally is debatable. According to the token’s Fibonacci Retracement, it could fall to around $1.5655 before making any further moves. This falls in line with the support at $1.52 mentioned earlier. However, the sub-$1.56 level does have enough volume to support the price. This would translate to a 17.46% correction. At press time, TON was trading at $1.89, up by 1.1% in the last 24 hours.