Avalanche and Toncoin See Active Address Surge, Hinting at Bullish Momentum
The cryptocurrency market is showing signs of recovery, with Avalanche (AVAX) and Toncoin (TON) leading the charge. AVAX has climbed over 3% to $17.59, while TON is up more than 1% to $2.82.
Active Addresses Double for Avalanche and Toncoin
Avalanche and Toncoin are experiencing a surge in network activity, suggesting growing user engagement and potential price increases.
- Avalanche (AVAX): Active addresses on the Avalanche network jumped to approximately 392,000 on Friday, a 51% increase from 192,000 on May 27. New addresses peaked at 199,000 on Sunday before settling around 85,000 on Monday.
- Toncoin (TON): Toncoin has seen a similar trend, with active addresses more than doubling. Currently, active addresses stand at roughly 750,000, up from 365,000 on June 2. New addresses created on the protocol have surged to approximately 241,000, an increase from 133,000.
This increase in active addresses often signals network growth and can coincide with key developments and ecosystem expansion, particularly in Decentralized Finance (DeFi). It also suggests heightened speculative sentiment as traders anticipate future price gains.
Technical Outlook: AVAX and TON Suggest Potential Upside
Technical indicators suggest a potential bullish trend for both AVAX and TON.
Avalanche (AVAX)
Avalanche is showing a strong intraday green candle, supported by increasing volume and a robust network. The Moving Average Convergence Divergence (MACD) indicator is providing bullish signals, maintaining a buy signal confirmed on Friday. This buy signal, triggered when the MACD blue line crosses above the red signal line, indicates imminent upward momentum.
A break above the immediate resistance, highlighted by the descending channel’s mid-limit, could further boost risk sentiment. Key resistance levels to watch include:
- 50-day Exponential Moving Average (EMA) at $19.61
- 100-day EMA at $21.07
- 200-day EMA slightly above at $23.74
Toncoin (TON)
For Toncoin, the path of least resistance appears to be upward, based on the Relative Strength Index (RSI) position at 42 and its reversal from lows around 32 on June 22. However, traders should temper their bullish expectations until the RSI breaks above the 50 midline.
TON is currently trading below key moving averages, including:
- 50-day EMA at $3.02
- 100-day EMA at $3.22
- 200-day EMA at $3.69
These levels could hinder the upward trend. On the downside, support levels to watch are $2.60 (tested on June 22) and $2.43 (tested in March).
Cryptocurrency Metrics – Frequently Asked Questions
Understanding key cryptocurrency metrics can help investors make informed decisions.
What Determines the Total Supply of a Cryptocurrency?
The developer or creator of each cryptocurrency decides the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted through mining, staking, or other mechanisms. This is defined by the algorithm of the underlying blockchain technology.
What is Market Capitalization?
Market capitalization is the result of multiplying the circulating supply of a given asset by its current market value.
What is Trading Volume?
Trading volume refers to the total number of tokens of a specific asset that have been traded or exchanged between buyers and sellers within a set trading schedule, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes from centralized and decentralized exchanges. Increased trading volume often denotes demand for a particular asset, as more people are buying and selling the cryptocurrency.
What is the Funding Rate?
The funding rate is a concept designed to encourage traders to take positions and ensure that perpetual contract prices align with those in spot markets. It defines a mechanism for exchanges to ensure that future prices and periodic price payments converge regularly. When the funding rate is positive, the perpetual contract price is higher than the market price. This means that traders who are bullish and have opened long positions pay traders who are in short positions. Conversely, a negative funding rate means that perpetual contract prices are lower than the reference price, so traders with short positions pay traders who have opened long positions.
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