Toncoin surged 12.1% in just two hours on July 8, fueled by fresh demand linked to new UAE Golden Visa rules. Despite the recent spike, the token’s price action over the past two weeks has lacked a clear trend, but persistent support around the $2.7 level has shown notable bullish resilience, preventing further declines and setting the stage for potential recovery.

The Open Network (TON), a decentralized Layer 1 blockchain, saw a surge in trading volume during this rapid price increase. However, despite the short-lived rally, the 12-hour chart still reflects a predominantly bearish sentiment. Toncoin has struggled to break through local resistance levels at $2.92 and $3. The rally retreated below the $2.92 mark shortly after, and volume-based indicators such as the Chaikin Money Flow (CMF) hovered near zero, signaling a lack of sustained buying pressure.

The Accumulation/Distribution (A/D) indicator also shows a declining trend over the past week, suggesting that consistent demand is still required for Toncoin to firmly reclaim the $3 resistance level. Traders eyeing a bullish move may consider entering long positions once Toncoin successfully flips $3 from resistance to support.

The recent surge in Toncoin’s price coincides with The Open Network’s declaration of a unique path to UAE residency. The new program offers applicants a 10-year Golden Visa in exchange for staking $100,000 worth of TON for three years and paying a one-time processing fee of $35,000. Notably, stakers retain full control of their assets throughout the period, while earning an annual yield between 3% and 4%.

Bobby Ong, Co-founder of Coingecko, praised the partnership on social media, highlighting the affordability of this crypto-based visa program compared to traditional routes like real estate investments or fixed deposits, which typically cost five times more. Ong suggested this innovative approach could attract wealthy investors or “whales” to Toncoin, potentially driving up demand and price.

Support around $2.7 to $2.8 has been solid since April, with an additional psychological floor at $2.5 earlier in the year. The Golden Visa declaration may motivate large holders to accumulate Toncoin near these levels, potentially triggering a sustained upward trend in the near future.

Looking at on-chain data, the Coin Days Destroyed (CDD) metric provides insights into spending behavior, especially from long-term holders. Higher CDD values typically indicate movement of older coins, often associated with selling. The latest significant wave of selling occurred in early May, after which selling pressure has noticeably weakened. Despite repeated tests of the $2.7 support, sellers have been relatively inactive, signaling strong underlying buyer interest.

Combining technical price action, subdued selling, and the positive news flow from the UAE partnership, Toncoin appears poised for potential gains ahead. While short-term volatility remains, the structural support and growing interest stemming from the Golden Visa scheme could catalyze a stronger rally in the coming weeks.

In summary, Toncoin’s sudden 12% price jump reflects the market’s reaction to the UAE’s innovative residency offer tied to TON staking. Although resistance remains near $3, the persistent support at $2.7 and weakening sell-side pressure provide a bullish backdrop. If momentum sustains, this partnership may serve as a key catalyst for Toncoin’s growth, attracting institutional interest and whales looking to capitalize on this unique investment and residency opportunity.