Toncoin (TON) has managed to hold steady at around $3.40, despite the cooling of the bullish momentum that followed a significant surge earlier this month. The surge was fueled by news that Telegram founder Pavel Durov had been allowed to leave France after a period of legal turmoil. His subsequent return to Dubai has brought fresh attention to both his legal case and Toncoin’s future, leaving many investors wondering if the cryptocurrency can continue its growth.

Toncoin’s Recent Price Surge and Cooling

Toncoin saw a notable price surge, jumping from $2.59 to $3.66—an increase of more than 40%—following the news of Durov’s travel approval. However, as the initial excitement began to wane, the price has cooled and is now hovering at $3.41, down 1.25% in the last 24 hours.

This slowdown may raise concerns for some, but underlying on-chain data suggests that Toncoin still has strong potential for growth. Despite the dip, several key metrics indicate that the coin is supported by solid fundamentals.

Slowing Momentum and Weaker Buying Pressure

The Relative Strength Index (RSI), a tool used to assess the strength of a price trend, has dropped from overbought levels and is currently sitting at 53.31. This suggests that the buying pressure, which helped propel the coin’s recent gains, is weakening.

Moreover, the On-Balance Volume (OBV), which measures buying and selling pressure based on volume, remains negative at -835K. This indicates that while there were volume spikes during the price increase, they may not have been backed by strong accumulation. As a result, Toncoin could face a period of consolidation or a short-term price retracement unless broader market support picks up.

Strong Holder Confidence and On-Chain Metrics

Despite the cooling of price momentum, Toncoin’s on-chain data paints a more optimistic picture. The token’s profitability metrics reveal that 73.82% of Toncoin holders are “in the money,” meaning they purchased their tokens at a price lower than the current market value. This level of profitability suggests strong holder confidence and a lack of selling pressure from those in profit. Only 12.25% of addresses are “out of the money,” indicating minimal resistance to further price increases.

Additionally, the Network Value to Transactions (NVT) ratio—a key indicator of the relationship between market value and transaction volume—has seen a decline after a price breakout in mid-March. This suggests that the price increase was supported by healthy transaction volumes, confirming that the rally had a solid foundation.

Rising Investor Confidence and TVL Growth

One of the most promising signs for Toncoin’s future is the growth in its Total Value Locked (TVL), a measure of the value of assets locked in its decentralized finance (DeFi) ecosystem. According to data from DeFiLlama, TON’s TVL surged from $140 million to nearly $170 million between March 15 and March 17, reflecting renewed investor confidence and a growing interest in the platform’s decentralized applications (dApps).

Furthermore, data from Santiment shows an uptick in whale transactions and social media activity surrounding Toncoin. These factors are often indicative of increased speculative interest, which could support further price growth in the short term.

Will TON’s Bullish Momentum Persist?

Despite recent price fluctuations, the overall outlook for Toncoin remains positive. Key on-chain metrics, including strong holder profitability and rising TVL, indicate that Toncoin has a solid foundation for continued growth. Additionally, the increased social media buzz and whale activity suggest that investor interest remains strong.

While short-term pullbacks are possible, as seen with the recent cooling of momentum, Toncoin’s structural strength and growing ecosystem suggest that it could maintain its bullish trajectory. Unless there is a significant shift in sentiment or macroeconomic conditions, Toncoin appears to be poised for further gains in the coming weeks.

Conclusion: A Bright Future for Toncoin

While the initial excitement around Toncoin’s recent surge has slowed, the strong on-chain metrics and increasing investor confidence suggest that the cryptocurrency could continue its upward trend. If Toncoin can maintain high transaction volumes and keep attracting interest from both retail and institutional investors, it is well-positioned for sustained growth in the long term.