Toncoin Continues To Decline, Here's Why!
JAKARTA - The price of Toncoin (TON) has again experienced a significant decline, falling by 2% to the level of 5.8 US Dollars (around Rp93,600) amid a wave of sales that hit the crypto market on weekends. This decline occurred at a time when leading cryptocurrencies such as Bitcoin and Ethereum also slumped, respectively below 60,000 US Dollars (approximately Rp968 million) and 2,700 US Dollars (approximately Rp43.5 million), triggered by rising geopolitical tensions in the Middle East.
According to Coinppe's information, the price drop of Toncoin is accompanied by the formation of a technical pattern of head and shoulders on a daily graph, known as the bearish reversal pattern. This pattern is characterized by three price peaks, where the mid-head (head) is the highest and the other two peaks (shoulders) are lower. Since this pattern formed and the market experienced a correction, the price of Toncoin has fallen from 8.17 US Dollars (approximately IDR 131,847) to 6,107 US Dollars (approximately IDR 98,536), recording a decrease of 26%. This decline also led to the value of Toncoin's market cap falling to 14.9 billion US Dollars (approximately IDR 240 trillion).
The drop in the price of Toncoin passes through an important support point at 6.5 US Dollars (approximately IDR 104,877), which triggers greater selling pressure in the market. The Average Directive Index Index (ADX) shows a 30% spike, indicating the current power of correction and the dominance of sellers over this asset.
SEE ALSO:
Derivative market data for Toncoin shows Open Interest (OI)-Weighted Funding Rate is at the level of -0.31, which is a negative number. This indicates that short sellers currently have to pay to maintain their position, signaling strong bearish sentiment and further price reduction expectations.
With the projection of head and shoulders patterns, the price of Toncoin is expected to drop further by 24% and will likely find new support points at 4.6 US Dollars (approximately IDR 74,221), which is predicted to be the lowest level in May 2024.
On the other hand, the sharp decline in Total Value Locked (TVL) on the Toncoin network is also a concern. TVL Toncoin plunged from US$760 million (around Rp12.2 trillion) to US$676 million (around Rp10.9 trillion), recording a 11% drop. This decline shows a decrease in liquidity and a possible decline in investor confidence, which could exacerbate the bearish outlook for Toncoin.