- TON drops 18%, testing support amid bearish momentum signals.
- Whale accumulation and net outflows hint at potential recovery.
Toncoin (TON) has notably declined, dropping 4% in the past 24 hours to trade around $5.20, while trading volume surged by 32%. Over the past month, TON has declined 18%, below the crucial support zone of $5.15. Despite these setbacks, Toncoin remains one of the best-performing cryptocurrencies of the year, having surged 144.52% year-on-year.
In 2024, Toncoin outpaced Bitcoin in performance, driven by its expanding ecosystem and increased investor confidence. According to CryptoQuant, TON’s Total Value Locked (TVL) reached new highs due to growth in staking, liquidity, and derivatives markets. With over 5 million users and 24 million transactions last year, Toncoin’s ecosystem demonstrated significant utility and adoption.
Meanwhile, TON’s recent price movements indicate bearish momentum, with the token rejected from the 50-day Exponential Moving Average (EMA) at $5.72. If the downtrend persists, analysts predict a further drop to $4.60, marking an 11.5% decline from current levels. Momentum indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) both signal bearish trends, underscoring market weakness.
Signs of Accumulation
Despite the decline, some market signals hint at potential recovery. On-chain data from IntoTheBlock reveals net outflows of 882.49k TON from exchanges, with 2.35 million tokens withdrawn compared to 1.47 million deposited. This suggests increasing accumulation, particularly by whales, whose holdings recently spiked to 781k TON. Additionally, technical indicators like the Stochastic Oscillator show bullish crossovers, signaling that selling pressure may be subsiding.
If bullish momentum strengthens, TON could reclaim $5.83 in the short term. However, a continuation of the bearish trend might see the token testing support at $4.60. Investors should monitor key resistance levels and market sentiment to gauge potential price reversals.
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