Toncoin forms bullish pennant as burn rate, transactions rise

Toncoin remained under pressure as cryptocurrencies rebounded and as its on-chain data improved. Toncoin ( TON ) was trading at $5.35 on Saturday, down by more than 35% from its highest level last year. It has lagged behind other cryptocurrencies like Bitcoin ( BTC ) and Ripple ( XRP ) which have jumped to a record high this year. On-chain data shows that the TON Blockchain was doing relatively well. According to Ton Stat , the number of daily on-chain wallet activations rose to 185,395 on Friday, the highest increase since Dec. 13. This increase brought the total number of on-chain activated wallets to over 38.8 million. Further, the number of TON tokens burned each day has started rising. They rose to almost 12,000, the highest level since November last year. This burning happened even as the number of minted tokens dropped to 80,800, down from almost 90,000 earlier this year. More data shows that the amount of fees collected in the TON ecosystem has risen to 23,790 TON, the highest gain in almost a month. Therefore, Toncoin price is likely being pressured because of the ongoing performance of its top ecosystem tokens. Some of the most popular tokens like Hamster Kombat, Notcoin, and Catizen have all plunged by double digits. You might also like: Telegram’s Durov: User data may be shared with authorities Toncoin price analysis TON price chart | Source: crypto.news Crypto analysts are broadly bullish on the TON price. In a recent post, Darkfost, an analyst at CryptoQuant noted that its annualized realized volatility has dropped and moved below the 0.25 threshold. He believes that periods of low volatiity are followed by market reversals. Another analyst said that the Normalized Risk Metric was nearing a low-risk period. Like low volatility periods, he believes that these periods of low risks are often followed by big swings in price action. The daily chart shows that Toncoin price is forming a symmetrical triangle. Its upper side connects the highest swings since June 15, while the lower side links the lowest levels since September last year. This triangle started forming after it surged from below $1 to a high of $8.30, pointing to a potential bullish pennant pattern. Therefore, the coin will likely have a bullish breakout in the next few weeks or months. If it happens, the initial target will be its all-time high of $8.30, up by 55% from the current level. Read more: Hamster Kombat to launch layer-2 chain as HMSTR nears key price