Toncoin (TON) saw its price rise again after TON Strategy, the company behind the TON network, made some upgrades to the network. Reduced gas fees and increased throughput rates were some of the catalysts that fueled TON’s rally, enabling it to break above the 5-month-long downtrend, smashing resistance levels on its way up.
TON crushes $1.5 psychological resistance after 4 months
TON holders’ hopes were once again raised after the coin made a remarkable recovery by breaking a psychological resistance level at $1.50. Despite testing this level for some time over the past couple of months, the coin was unable to break above this resistance level.
From January 2026, the prices have maintained a narrow range between $1.2 and $1.5. In this 4-month period, the buyers have always stepped in around $1.2 because they find it to be an attractive zone, and they always buy at that level when the price drops. On the other hand, the sellers have also remained active around $1.5 and capped the upward momentum at that level.
This ongoing interaction created a stable range where demand at the bottom and supply at the top keep prices contained. However, such prolonged consolidation typically signals a buildup of pressure, as liquidity accumulates on both sides.
6x faster block time, 10x better throughput and 6x time lower fee
With the in April when TON deployed its Catchain 2.0 consensus upgrade, the resistance levels did not stand a chance. After the upgrade, the block times were reduced from approximately 2.5 seconds to approximately 400 milliseconds, while throughput increased by an estimated 10x.
In simple terms the upgrade allows the network to process transactions faster and support more activity at scale. Transaction finality also improved meaningfully, with settlement times reduced from approximately 10 seconds to approximately 1 second.
In addition, the network also implemented a reduction in transaction fees of approximately 6x, lowering average costs to roughly $0.0005 per transaction under a fixed-fee model designed to support higher transaction volumes.
From an economic standpoint, the upgrades also improved validator efficiency in the near term, as TON Strategy’s gross staking rewards increased by more than 3.5x in April compared to March.
TON ends its 5-month downtrend
In terms of price, the TON coin ended a 5-month-long downtrend that saw prices crash from as high as $2.20 to $1.20. The end of Toncoin’s 5-month downtrend represents a critical shift in market structure and sentiment, particularly in terms of price action.
The protracted downtrend from $2.2 to $1.2 was as a result of consistent selling activity, which showed that the sellers had been dominating the market through higher lows and higher highs. A breakaway from the existing downtrend is an indication that the trend has broken down and buyers have started gaining momentum.
This is critical because it normally marks the end of the bearish stage as a transition to accumulation or bullish reversal. At such a point where the market has gone through a prolonged bearish trend, the breakout is usually an indication that there is more demand than supply, especially if it is coupled with increased volume or stabilization of prices above resistance. This could also mean that those selling off rallies will not do so any further.
However, for this shift to hold, price must maintain strength above key levels and avoid falling back into the previous downtrend channel, as false breakouts are common in early reversal phases.
Will TON hold above the the $1.5 level?
To see what’s going on in this range, it is important to zoom into the price action, and that means looking at the shorter time frame chart. The 4-hour chart shown below shows TON skyrocketing past the resistance level, breaking above the 50-day and 100-day moving averages, with the upgrade.
The relative strength index indicator signals that the TON market is extremely overbought. This means that there will be a natural market correction and the price could decline. But it is important that TON does not lose the new grounds it gained with the upgrade. So for TON to not fall back to previous levels, it either needs to hold or form a new base.
With regard to price holding, it indicates that after the bullish run, the price doesn’t go back down to previous levels but rather maintains its position within the higher range.
When it comes to Toncoin, it suggests that there is acceptance of increased prices in the market following the breakout and that buyers will defend these higher price levels.