Toncoin Faces Bearish Pressure Despite Telegram’s New Gift Feature Aiming for $8 Breakout

Toncoin has recently encountered a downturn, experiencing a 3.5% decline over the past day amidst a weekend characterized by low market volatility. This decrease is primarily attributed to geopolitical tensions in the Middle East and the potential formation of a ‘death crossover’ between critical Exponential Moving Averages (EMAs). In light of these challenges, the question arises: can the introduction of Telegram’s new ‘Gift’ feature provide the stimulus necessary for Toncoin to aim for an $8 valuation?

Telegram’s CEO, Pavel Durov, unveiled an innovative ‘Gift’ feature on the platform, allowing users to send digital gifts to one another. These gifts can be showcased on user profiles or converted into ‘Stars,’ a virtual currency unique to Telegram. These Stars can subsequently be used to support creators or to purchase services within mini apps on the platform. The introduction of this feature represents Telegram’s ongoing commitment to enhancing user engagement and interaction.

Furthermore, certain gifts will be offered in limited quantities, introducing an element of exclusivity. According to Durov’s blog, these limited-edition gifts are expected to be convertible into Toncoin-based NFTs later this year. This development could open new avenues for users to auction and trade these tokenized gifts beyond the Telegram ecosystem, with blockchain technology ensuring secure ownership. This strategic move by Telegram could significantly increase transaction volumes on the TON network, potentially driving a recovery in Toncoin’s price.

In addition to the ‘Gift’ feature, Telegram has rolled out several other updates such as enhanced verification codes, an improved reporting interface, and redesigned video chat functionality on iOS devices. These updates are part of Telegram’s broader strategy to improve the overall user experience, which could further enhance the platform’s appeal and user retention.

Data from DefiLlama indicates that the Total Value Locked (TVL) in Toncoin’s network increased from approximately $315 million to $403 million in September, reflecting a growth of around 28%. This rise in TVL suggests increased investor confidence in TON’s decentralized finance (DeFi) protocols, highlighting the network’s strength and potential for further growth.

Despite these positive developments, Toncoin faces potential downside risks. The ongoing geopolitical conflict between Israel and Iran has led to a sharp reversal in Toncoin’s price, dropping from $6.15 to $5.3, marking a 14% loss. This decline underscores a bearish sentiment, further exacerbated by the looming death crossover between the 50-day and 200-day EMAs. If this crossover materializes, Toncoin may encounter a substantial drop to the $4.7 support level, posing an 11% downside risk.

Conversely, should buyers succeed in transforming the overhead resistance trendline into a support level, Toncoin could experience a sustained rally. In such a scenario, the price could reach $7.3, potentially paving the way for a further climb to $8.3. This optimistic outlook hinges on the ability of buyers to sustain upward momentum and overcome prevailing bearish pressures.

Telegram’s newly introduced ‘Gift’ feature could be a pivotal factor in Toncoin’s potential price resurgence, driving it towards the $8 mark. By providing a novel means of user engagement and creating new opportunities within the TON ecosystem, Telegram is positioning itself as a key player in the digital currency space.

As the market continues to navigate geopolitical uncertainties and technical challenges, the coming weeks will be crucial in determining whether Toncoin can capitalize on these developments and achieve a significant price breakout.