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Toncoin Set For Breakout? Low Volatility Signals Potential Rally Ahead

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Toncoin Set For Breakout? Low Volatility Signals Potential Rally Ahead
  • ARV metrics show historically low volatility, often a precursor to price swings.
  • Toncoin’s transaction and address counts on TON network are climbing, suggesting growing network interest.
  • With the launch of Elluminex, Toncoin is poised to improve its DeFi position and liquidity access.

Since December 4th, Toncoin price has been on a steady decline, dropping from $7.20, while Bitcoin price surged from $103K to $108K between December 4th and 17th. After that, Bitcoin fell, but Toncoin’s decline worsened.

Even though Bitcoin price recently set a new all-time high at $109K, Toncoin price has remained sluggish. As in intraday, it posted just a modest 3.5% intraday increase.

At the same time, the market is buzzing with optimism ahead of Donald Trump’s inauguration on January 20th, 2025. This has created a sense of excitement in the crypto space.

TON/USD & BTC/USD 1.D. | Source: TradingView
TON/USD & BTC/USD 1.D. | Source: TradingView

However, Toncoin’s slow response to these bullish market conditions has led some analysts to speculate that the coin could be gearing up for a surprise rally. This could potentially propel its price to new heights.

CryptoQuant charts also seem to support this theory. Despite Toncoin’s current lack of momentum, its Annualized Realized Volatility (ARV) for the 7-day and 30-day periods has reached record lows.

According to data, the 7-day volatility recently dropped below 1.0, while the 30-day volatility is similarly low. Historically, such periods of quiet have often preceded significant price swings. Low ARV typically indicates stable prices, with minimal speculative trading or market uncertainty.

However, these quiet phases are often followed by sharp price movements triggered by external catalysts.

Is Toncoin Poised for a Major Breakout After Low Volatility Phase?

As it is evident before, that low volatility periods are often a signal for market analysts and investors to stay alert. Historical trends show that after these calm phases, significant price changes usually follow for Toncoin (TON).

In the past also, such periods of stability have often been succeeded by upward momentum, as fresh interest and new capital has entered the market.

1-month TON: ARV Chart | Source: CryptoQuant
1-month TON: ARV Chart | Source: CryptoQuant

Also, the charts clearly depict Toncoin price current movements is majorly going through various volatility phases. After large price swings, a sharp reduction in volatility has often occurred, paving the way for new rallies.

For instance, it was evident with a notable example that occurred in mid-2024, when Toncoin price soared past $8 after a period of low volatility. This historical pattern suggests that the current rest in price may be setting the stage for another pivotal moment in Toncoin’s journey.

Further analysis reveals that low volatility tends to appear in short and scattered bursts in momentum seen on an asset’s price. This indicates either market consolidation or a lack of confidence in a specific direction.

1-week TON: ARV Chart | Source: CryptoQuant
1-week TON: ARV Chart | Source: CryptoQuant

Also, these consolidation phases often serve as springboards for larger price trends, too.

Counts of transactions and address on TON network | source: Tonscan
Counts of transactions and address on TON network | source: Tonscan

Adding to the optimism, data from Tonscan Explorer on TON network shows an uptick in blockchain activity. After a dip earlier in 2025, Toncoin’s transaction count has surged to 4.2 million, marking an approx 40% increase since January 2nd, 2025, when it was just 2.72 million.

Additionally, Toncoin’s address count has been climbing rapidly since October 2024, currently standing at an impressive 136 million addresses. This further suggests growing interest in the ecosystem.

Toncoin Technical Overview

Technical indicators suggest that Toncoin is currently under selling pressure, though this pressure seems to be gradually easing.

The AO and MACD histograms both show a decrease in bearish momentum compared to the sharp drop experienced in December 2024, signaling that the downward trend is weakening.

Moreover, the CMF is showing signs of a potential shift, with money flow increasing above the zero line and currently sitting at 0.05. This shift suggests that buying interest may be starting to outweigh selling pressure.

TON/USD 1.D. Indicators | Source: TradingView
TON/USD 1.D. Indicators | Source: TradingView

Additionally, the RSI has made a U-turn, moving towards the overbought zone. At the time of writing, the RSI stands at 38.91, indicating that the selling pressure is subsiding. Also, a possible reversal could be on the horizon as Toncoin moves closer to potential upward momentum.

Elluminex: a Game-Changer for Toncoin’s Cross-Chain Future

As Toncoin seems to be approaching its next major price movement, that may be building up in the shadows, too. Here, developments within the ecosystem of the TON network may play a pivotal role in determining its direction.

One such notable development that market participants might have set an eye on is the Elluminex (ELX) project. This aims to tackle the cross-chain interoperability challenges that TON network currently faces.

For a while, DeFi has struggled with enabling global liquidity across multiple blockchains. While Ethereum has seen platforms like Uniswap and Binance Smart Chain benefit from tools like PancakeSwap.

In the same way, TON is behind and is yet to establish a universal solution to connect with other blockchains effectively.

In that step forward, Elluminex could be the answer to this issue, as this project mainly seeks to address this gap by offering TON network users access to over 40 blockchains.

Moreover, the project’s decentralized exchange (DEX) promises to enhance user experience with features like an AI-powered portfolio tracker designed to optimize trading efficiency.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

K
Written by
Markets Writer

Krystian Bielanski is a markets and cryptocurrency writer contributing to The Market Periodical, covering Bitcoin, altcoins and broader market analysis.

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About this article

PublishedJanuary 20, 2025 8:52 pm
Last updatedJanuary 20, 2025 10:02 pm
Written byKrystian Bielanski, Markets Writer
ReviewedFact-checked by the TMP editorial desk

This report follows our Editorial Policy, Fact-Checking Standards and Code of Ethics. Found an inaccuracy? See Corrections.

Disclaimer. Informational only, not financial advice. Crypto, forex and stocks are volatile, high-risk assets — always do your own research and consult a qualified adviser.

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