Toncoin (TON) Faces Significant Loss Amidst Market Volatility
On July 29, 2024, Toncoin (TON) experienced a notable downturn, marking a significant loss in its value. This unexpected decline came as a surprise to many investors, especially considering that venture capital firms have maintained their bullish stance on the token. The cryptocurrency, which had been outperforming Bitcoin (BTC) for the majority of the year, saw its market dominance wane in recent weeks.
The price of Toncoin dropped by 15% over a two-week period leading up to the latest market bounce. This decline was largely attributed to the actions of cryptocurrency whales – entities holding substantial amounts of TON tokens. Between July 21 and 28, these large holders withdrew millions of Toncoin tokens from circulation, significantly contributing to the downward pressure on the token’s price.
On-Chain Activity and Market Indicators
On-chain data reveals interesting patterns in Toncoin’s recent performance. The ratio of daily on-chain transactions in profit to loss reached its highest level since July 19, indicating that many token holders were taking profits. This profit-taking behavior likely exacerbated the selling pressure on TON. Furthermore, Toncoin’s Large Holders’ Netflow decreased by a staggering 97.05% in the seven days prior to July 29, signaling a substantial outflow of tokens from major holders.
Technical indicators also paint a bearish picture for Toncoin. Both the Awesome Oscillator (AO) and Moving Average Convergence Divergence (MACD) have turned negative, suggesting a decrease in market momentum and the potential for further decline. These indicators are closely watched by traders and could influence short-term price movements.
Future Outlook and Market Capitalization
Looking ahead, the future of Toncoin’s price remains uncertain. If the current selling pressure persists, analysts suggest that the price could potentially drop to support levels of $6.57 or even as low as $6.02. However, there’s also the possibility of a rebound if whale activity shifts towards accumulation. In such a scenario, TON could potentially recover to $6.90 or even reach $7.18.
Despite the recent setback, it’s worth noting that Toncoin still boasts impressive long-term performance. As of July 23, 2024, the cryptocurrency had a market capitalization of $17.4 billion and had delivered a remarkable year-over-year return of 394%. This strong overall performance underscores the volatility and potential of the cryptocurrency market, reminding investors of both the risks and rewards associated with digital assets like Toncoin.
