Toncoin (TON) Faces Bearish Push Toward $4.42 as Sellers Dominate

beincrypto.com 10 October 2024 10:26, UTC

Analytics

Toncoin ($TON) is experiencing a price drop as bearish sentiment prevails in the market. It currently trades at $5.11, a 4% decline over the past week.

The Telegram-linked asset has seen a sharp decline in buying activity, with key indicators such as daily active and new addresses, large transaction counts, and profit-making transactions all showing signs of weakness.

Market Shuns Toncoin as Sentiment Turns Bearish

BeinCrypto’s assessment of Toncoin’s on-chain performance has revealed a decline in its network activity. Over the past week, the daily count of unique addresses that have completed at least one transaction involving the altcoin has dipped by 43%. Likewise, new demand for $TON has also registered a 48% dip during that period.

Read more: What Are Telegram Bot Coins?

Toncoin Daily Active Addresses. Source: IntoTheBlock

Fewer active and new addresses suggest less demand for an asset, which could lead to a price decline as fewer users are trading or holding it. Traders and investors interpret a drop in network activity as a negative indicator. They see it as a signal that momentum is weakening, which could trigger further price drops.

Some of $TON’s key holders have left the market, as evidenced by its daily large transaction count decline. IntoTheBlock’s data show that the daily count of $TON transactions valued between $100,000 and $1 million has decreased by 24% over the past month. During the same period, larger transactions worth above $10 million have plummeted by 23%.

A drop in an asset’s large transaction count is a bearish signal. When retail investors notice large investors or whales reducing their trading activity, it often erodes their confidence, leading to more selling activity and contributing to sustained price declines.

Toncoin Large Transaction Count. Source: IntoTheBlock

$TON Price Prediction: A Drop to Monthly Low

At its current price, $TON is trading just below support at $5.25. The inability of $TON bulls to defend that level confirms that the downward trend may continue if market sentiment does not change.

If the decline persists, $TON’s price could decline to $4.42, a low last seen on September 6.

Toncoin Price Analysis. Source: TradingView

However, If the broader market turns bullish and demand for the altcoin surges, $TON’s price could rise above support levels and move toward the next key resistance at $6.81.