Toncoin Price Dips 10% as Ethereum ETFs Take Center Stage
thecryptobasic.com 23 July 2024 16:53, UTC Toncoin price has decoupled from the broader crypto market trends in the past week, dropping 11% as it fell below $7 on July 23. On-chain analysis explores the key bearish catalysts and how TON could move as the month draws to a close.
Toncoin Crashes 11% Amid Market Rally
Toncoin (TON) is a layer-1 blockchain protocol, with its tech stack heavily linked to the social media giant Telegram. The TON ecosystem has emerged as one of the breakout crypto sectors this year, thanks to dominant market themes like Bot trading, CryptoAI and Gaming.
In 2024 so far, Toncoin has recorded remarkable gains in excess of 264% as it recorded a new all-time highs of $8.28 on June 15, before breaking the $8 barrier again on July 3. This has seen Toncoin rise rapidly to become one of the top 10 ranked cryptocurrencies by market capitalization, as per CoinMarketCap data.
However, as the Ethereum ETFs launch drew closer, Toncoin has struggled to gain traction in the past week.
On July 16, Toncoin price rose to $7.35. But at the time of writing on July 23, TON price has slid below the $7 mark, reflecting a 11% decline over the last 7 days of trading. In comparison, Ethereum and Bitcoin have recorded gains in excess of 5% during that period, while the broad altcoin market cap also grew by a similar margin.
Toncoin price declined 11% during a market rally, raising alarms among short-term bull traders. Currently the dominant speculative narrative is that crypto investors have shifted focus away from the Toncoin ecosystem, following the announcement of the Ethereum ETFs impending launch.
The demand for TON could decline further in the days ahead, raising the risk of further downside, with investors channeling capital towards Ethereum-hosted projects to benefit from the expected ETF inflows.
TON Price Forecast: $6 Support at Risk?
Toncoin price has experienced significant volatility over the past few months, with notable price movements reflecting changing market sentiments. As of the latest data, TON is trading at $6.92, slightly down by 0.86% for the day. The key question for traders and investors is whether the $6 support level can hold.
From a technical perspective, the chart highlights a substantial rise in TON’s price, with a 264.52% increase over 198 days, demonstrating strong bullish momentum in the earlier part of the year.
However, recent price action suggests a period of consolidation and potential downside risk. The immediate support level is at $6.81, which is crucial for maintaining the current bullish structure.
Key resistance levels are observed at $7.02 and $8.50, marking the upper boundaries of recent price ranges. A break above these levels could signal renewed bullish momentum, potentially targeting higher levels.
Conversely, if the price falls below the immediate support at $6.81, the next critical support level is at $6.00, which would be a significant psychological and technical level for traders to watch.
In summary, while Toncoin has shown remarkable growth, the $6 support level is indeed at risk if bearish pressure continues.
