Over the past week, Toncoin (TON) saw more than 240,000 tokens transferred to exchanges, indicating building selling pressure.
On-chain data from Santiment reports that Toncoin’s supply on exchanges has steadily increased.
Historically, similar movements in the crypto market have meant subsequent price dips.
Short-term bearish trends often follow the movement of assets from cold storage or private wallets to exchange hot wallets if the asset can not find enough buy-side volume to absorb the selling volume.
In Toncoin’s case, the situation seems to play out by the book, and now, its price is already starting to bust.
Toncoin Price Suffers Drop
There’s been a dip in the Toncoin price 0.71% drop in the past 24 hours. Current market reports put the token’s price at approximately $4.81.
Its market capitalization was $11.98 billion at the time of writing. Daily trading volume was up by 32.59%.
This is to leave a volume of $163.61 million on the wave of lower liquidity and decreased buying power.
With an influx of TON tokens onto exchanges, the price plunge is ultimately just a reflection of the bearish sentiment that the market is showing right now.
After hitting highs of around $4.89, TON declined steadily. The bears have consistently sold, and no meaningful recovery is in sight.
The price drop suggests Toncoin may not get enough buy support to offset all the tokens entering the market.
For one, TON’s price continues to trend down, as seen from the supply charts. This process extended bearish phases.
Supply above its mean often puts upward pressure on the sell side and downward pressure on demand.
Large TON movement onto exchanges could also indicate that major holders, or “whales,” are liquidating fractions of their portfolios.
If this continues, retail investors may be forced to sell at lower prices, fueling the fall. This increase in exchange reserves shows that the market is looking cautiously forward.
Technical Analysis and Price Prediction
Considering Toncoin’s price action, we see further upside potential unless strong buying support kicks in.
According to the Binance chart, the Toncoin price is skirting challenging resistance levels. However, an additional way down is the descending channel pattern.
This is a sign that it’s struggling to break past these levels. In case of continuation, the next necessary support is around $4.70. If sellers can keep controlling, the support can fall to $4.50.
The TON/USDT pair has a clear descending channel. Each relief rally is being resisted, and the asset remains bearish.
Below, you will also see the Awesome Oscillator (AO), which indicates weak momentum. Red bars dominate the histogram, and the overall market sentiment is negative.
However, for a bullish reversal, Toncoin price must break out of its current downtrend and regain $5.00 as support.
Free fall prices and increased supply on the exchanges make a quick recovery unlikely in the short term. Traders should look for stabilization signs and only go long.
The post Toncoin Price Tumbles Amid Mounting Selling Pressure appeared first on The Coin Republic.
The Coin Republic – Read More