Originally designed as a blockchain-based messaging application, Toncoin (TON) has recently gained significant traction in the cryptocurrency market, surpassing Chainlink (LINK) in market dominance. Toncoin, currently boasting a market cap of $8.06 billion, has outpaced Chainlink, which stands at $7.91 billion in coinmarketcap.
Notably, TON’s recent surge in value, reaching $2.35, has contributed to its market dominance, even though LINK experienced a more favorable performance with a 5.59% increase over the last 24 hours.
The surge in Toncoin’s market value can be attributed not only to its price and circulating supply but also to the expanded utility of its blockchain. Branded as “The Open Network,” Toncoin has evolved beyond its initial messaging-centric functionality to encompass a broader range of use cases.
Upon closer examination by Bitfinder news, it was discovered that Toncoin users can now leverage the blockchain for gaming and engage in Decentralized Finance (DeFi) activities. The blockchain’s utility extends further to include supply chain management and payment infrastructure.
The increased adoption of the Toncoin blockchain has subsequently driven the demand for the TON token. Currently, the TON token is eyeing a target of $2.43, which previously acted as a resistance level that led to a decline in the cryptocurrency’s value on November 16.
Examining the technical aspects, TON’s upward trend is attributed to the support established at $2.26. Consequently, the TON price rose to $2.38 before facing resistance, causing a slight pullback to $2.34. The Moving Average Convergence Divergence (MACD) indicates a bullish trend, with a current reading of 0.0097 and the 12-day EMA (blue) surpassing the 26-day EMA (orange).
The Directional Movement Index (DMI) reflects a favorable scenario for TON, with the +DMI (green) at 24.222 and the -DMI (red) at 18.90, suggesting buyer dominance. However, it’s crucial to note that the Average Directional Index (ADX), which gauges the strength of a trend, is currently at 11.41. For TON’s potential uptrend to be confirmed, the ADX needs to reach a reading of 25 or above, indicating a strong directional trend.