Toncoin (TON) has been attracting growing attention as it shows signs of a potential breakout, fueled by recent technical developments and rising investor optimism. Following Telegram founder Pavel Durov’s return to Dubai, after receiving permission from French authorities, Toncoin has surged in both price and trading volume. Despite facing some temporary rejections at key resistance levels, the cryptocurrency’s on-chain metrics suggest a bullish outlook and hint that a breakout could be imminent.

Recent Price Action and Resistance Levels

In the last 24 hours, Toncoin has seen a 3.04% increase in price and a 20.83% rise in trading volume, according to CoinMarketCap. At the time of writing, Toncoin was trading at $3.567, just below the critical $3.60 resistance level. The cryptocurrency has now attempted to break through this resistance three times but has faced rejection each time, leading to price consolidation.

However, if Toncoin successfully breaks above this resistance zone, it could trigger a rally toward the next key level of $3.90. The chart currently shows that Toncoin is in an ascending bullish triangle pattern, which indicates that the next price move could potentially be upward, depending on whether the resistance level can be broken.

Bullish Technical Indicators

Looking at Toncoin’s technical indicators, there are several signs pointing toward bullish momentum. The Relative Strength Index (RSI) stands at 58, indicating increased buying pressure without reaching overbought conditions. The Moving Average Convergence Divergence (MACD) is also showing a strong ‘buy’ signal, with both short-term and mid-term moving averages pointing upward.

However, caution is advised, as Toncoin’s long-term moving averages suggest a ‘sell’ signal. The Average Directional Index (ADX), which measures trend strength, is neutral, indicating that the market direction remains uncertain. This means that Toncoin will need strong buying pressure to break the $3.60 resistance and confirm a continued uptrend.

On-Chain Activity and Investor Sentiment

On-chain data offers more insight into Toncoin’s potential for a breakout. According to Coinglass, Toncoin’s Open Interest (OI) rose by 10.55% in the past 24 hours, signaling an increase in investor confidence. Additionally, the Open Interest Weighted Funding Rate has turned positive, suggesting that more investors are leaning toward a bullish outlook, possibly driven by Durov’s return to Dubai and his continued involvement with the TON network.

Furthermore, network activity has risen, with a 6.75% increase in active addresses over the past 48 hours, according to Artemis. The Total Value Locked (TVL) has also seen steady growth, signaling optimism among investors. Additionally, whale activity appears to be on the rise, as reflected by increased trading volume and exchange outflows, suggesting that large-scale investors are accumulating Toncoin.

What’s Next for Toncoin?

The big question is whether Toncoin can sustain its momentum and successfully break the $3.60 resistance. If the cryptocurrency manages to break through, a rally toward the $3.90 level could follow, providing traders with a strong opportunity for profit. However, if the price fails to break through and consolidates, Toncoin could face a period of price correction.

Conclusion: A Major Rally on the Horizon?

Toncoin’s technical indicators and rising on-chain metrics suggest that a breakout could be coming soon. The cryptocurrency is testing key resistance levels, and if it can overcome the $3.60 barrier, it could be set for a significant rally. However, traders should remain cautious, as a breakdown could lead to a consolidation phase or even a mid-term price correction. As always, monitoring Toncoin’s price action and market sentiment will be key in predicting its next move.