Toncoin Faces Significant Price Struggles Below Key Support Levels
Toncoin #TON, linked to Telegram, has experienced significant price volatility recently. Despite initial optimism due to its association with a large user base, Toncoin is struggling to maintain critical support levels, causing concern among investors.
Market Performance Overview
The cryptocurrency market faces uncertainty, with Toncoin's attempts to stabilize above $5.96 failing repeatedly. Currently trading below key support points, the likelihood of a recovery before October ends appears low.
Technical indicators and whale activity indicate downward pressure on Toncoin. The cryptocurrency needs to overcome numerous challenges, both technical and psychological, to regain bullish momentum as market sentiment has turned bearish.
Bearish Sentiment Clouds Toncoin’s Future
The Ichimoku Cloud indicator suggests a bearish outlook for Toncoin, indicating potential negative price action ahead. This trend may limit any near-term recovery, prolonging pressure on the asset until more favorable market conditions emerge.
Large holders, or whales, have sold approximately 22 million TON in the last 24 hours, valued at around $116 million, marking the largest outflow in six weeks. Such significant sell-offs reflect uncertainty about Toncoin's immediate prospects and could further suppress its price.
Where Toncoin Could Find Support
Currently, Toncoin is trading at $5.25 TON/USDT, below the key support level of $5.40. Following an 11.5% decline over the past week, continued selling could push the price down to around $4.80, extending the downturn and impacting future outlook.
The $5.40 to $4.80 range historically serves as a consolidation zone, potentially leading to stagnation and investor frustration. To alter this trajectory, Toncoin must reclaim the $5.40 support level to aim for a retest of $6.00.
TON Chain Explained
The TON (The Open Network) blockchain, initially developed by the Telegram team, aims to deliver fast, scalable blockchain services. Conceived in 2018 under Nikolai Durov, it sought to handle millions of transactions per second using advanced Proof-of-Stake (PoS) mechanisms and innovations like sharding for scalability.
However, the project faced regulatory challenges from the SEC in 2019 regarding its Initial Coin Offering (ICO), which raised $1.7 billion, leading to Telegram's withdrawal from the project in 2020 after an $18.5 million settlement.
Post-Telegram, the TON community continued development independently, rebranding as The Open Network. In 2023, Telegram reintegrated TON into its ecosystem, allowing its 800 million users direct interaction with the blockchain.
Today, TON supports various services, including decentralized storage, domain name services (TON DNS), and micropayment systems (TON Payments), all utilizing its native cryptocurrency, Toncoin.