Toncoin (TON) is currently at the verge of a crucial resistance level that has yet to be successfully breached. However, this situation may change as the popularity of Notcoin (NOT), a new token making waves in the blockchain realm, continues to rise.

Impact of Notcoin Surge on Toncoin

NOT, the native token of a Web3 game on the Toncoin blockchain, has experienced a remarkable increase, soaring over 220 percent in the past week.

This dramatic surge not only strengthens Toncoin's price position but also boosts optimism among TON holders regarding the potential for future price rallies.

Bullish Signals from Technical Indicators

According to BeinCrypto reports, Toncoin, currently trading around US$6.6, has been making concerted efforts in recent weeks to break through the US$7.0 resistance barrier, a level that has long hindered its price uptrend.

Despite facing various challenges, the current market sentiment leans towards the positive side. This optimism is primarily fueled by technical indicators, notably the Moving Average Convergence Divergence (MACD).

Indicators currently indicate a bullish crossover, suggesting that Toncoin's price upsurge is likely to continue. When the histogram bars turn green, confirming this bullish potential, it signals advantageous buying opportunities for investors.

Limited Profit-Taking Activity

A factor contributing to the positive outlook is the limited profit-taking activities among TON holders. Analysis of active addresses based on profitability reveals that less than 19 percent of investors are currently in profitable positions.

Generally, profitable investors tend to sell their assets to secure profits, which could exert downward pressure on asset prices.

However, with the majority of investors not reaping profits, significant selling pressure is not dominant, thereby minimizing the risk of substantial price declines due to profit-taking.

If this trend persists and Toncoin successfully breaches and closes above US$7.0, it could trigger bullish sentiment across the market and drive prices towards new record highs above US$7.6.

However, if Toncoin fails once again to breach this level, the bullish sentiment may dissipate, and Toncoin might test the next key support at US$6.5, which, if not held, could lead to further price declines for Toncoin. Let's watch closely.