Popular messaging app Telegram announced on February 29 that it would cap its ownership of altcoin Toncoin (TON) to around 10% in an effort to address concerns about concentration of assets. This announcement comes amid a potential rally for TON, with analysts predicting significant price increases in the near future. Here are the details…
Telegram will fix the “concentration” problem for altcoin TON
Telegram previously owned a larger percentage of TON, raising concerns in the community about potential market manipulation and lack of decentralization. To address these concerns, the company outlined a plan to sell some of its assets to long-term investors at a discounted price.
This move aims to disperse ownership and stabilize the TON ecosystem. Additionally, Telegram implemented a locking and linear unlocking mechanism for these sold shares, further preventing market flooding and promoting sustainable growth.
Latest situation in TON price
Meanwhile, the TON price is showing positive signs and potentially breaking the long-term consolidation pattern characterized by a symmetrical triangle. This pattern, which has formed since June 2022, has seen the price repeatedly test both support and resistance lines, signaling a potential breakout.
Analysts think this potential breakout will translate into a significant upside in the near future, with a price target of $4.5. This target is estimated by measuring the height of the triangle and extrapolating from the break point. Additionally, technical indicators such as the Relative Strength Index (RSI) on both the weekly and 4-hour charts are showing a bullish trend, supporting the bullish outlook.
Telegram’s advertising revenue sharing draws attention
Adding to the positive sentiment, Telegram recently announced that it will begin sharing advertising revenue with users via the TON blockchain starting in March 2024. This move ties the success of the TON ecosystem directly to the growth of the platform, potentially encouraging user engagement and further increasing the value of TON.
While TON’s outlook appears optimistic, some analysts warn against complete certainty. The short-term target is set at $2.95, representing the previous high on February 28. However, the price falling below the $2.4 support zone on the 4-hour chart and failing to recover may invalidate the bullish thesis.
Telegram’s decision to limit TON assets, combined with the potential price increase and revenue sharing initiative, paints a promising picture for the future of TON. However, investors are advised to be cautious and follow price movements closely, accepting potential risks as well as apparent opportunities.
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