Toncoin price crashes to a crucial support, gets oversold

Toncoin price continued its strong sell-off as concerns about its ecosystem and network growth persisted.

Toncoin ($TON) dropped to the crucial support level of $2.90 on Thursday, down 65% from its highest level in 2024. It has declined for six consecutive weeks and is now trading at its lowest level since March 11.

Toncoin has been in a sharp downturn amid weak on-chain and ecosystem metrics. Most tokens in its ecosystem have plunged more than 80% from their all-time highs, including popular tap-to-earn tokens like Hamster Kombat (HMSTR) and Catizen (CATI).

Tapswap, which recently launched its airdrop, has crashed, bringing its market cap to $2.90 million, a tiny amount for a tap-to-earn game that had over 70 million users.

Network statistics show that the $TON Blockchain is struggling. The number of daily transactions has dropped to 2.215 million, significantly lower than the 20 million it processed just a few months ago. Monthly active wallets have also declined to 2.8 million from nearly 5.2 million in February.

This slowdown is largely due to users abandoning the $TON Blockchain following the disappointing debut of its tokens.

Further, the total value locked in the $TON Blockchain has dropped from over $1 billion in 2024 to $153 million. The weekly volume of transactions in $TON’s DEX ecosystem has dropped to just $68 million. This makes it smaller than other chains like Aptos (APT) and the recently launched Unichain.

Toncoin price analysis

$TON chart | Source: crypto.news

The weekly chart shows that $TON’s price peaked at $8.2440 in June last year before falling to $2.9155. It recently dropped below the crucial support level of $4.550, which marked the lowest swing in April, September, and November last year.

Toncoin has now reached key support at $2.9155, which was the highest swing in December 2022. It has also moved below the 50-week moving average, while the Stochastic Oscillator has dropped into the oversold zone.

The Average Directional Index has climbed to 27, indicating that the bearish trend is strengthening. As a result, the coin will likely continue declining, with sellers targeting the psychological level of $2.00, 35% below its current price.