Toncoin (TON) Down 9% as Downward Trend Continues
Last Updated on 6 November 2023 by CryptoTips.eu
Telegram-owned crypto token Toncoin (TON) has been in a downward trend for days now, and continues with a 9% drop in the last 24 hours. The native token of the TON network has been in a long term trend which has worsened over time.
TON is the native token of the native token of decentralized layer 1 blockchain network, Toncoin. The token was originally designed to be used for an easy-to-use application that allows users to buy/send/store funds.
The network uses proof-of-stake consensus for scalability and reliability. It therefore has high transaction throughput, making it a fast transaction network. TON is currently managed by the TON Foundation, and currently the 21st biggest cryptocurrency by market capitalization according to CoinMarketCap.
It has also lost over 22% over the last seven days, as well as over 50% in the last six months. This attests to the fact that the token has been in a long term downward trend that may not be slowing down yet.
Why TON may be dropping
There are many reasons why any crypto token may drop. At the moment, the crypto market is generally in a downward trend, or at best a tight range. However, TON has a long downward history spanning months
First, it is obvious that sellers are in charge of the game, getting rid of the token probably to invest in other tokens and coins as the price isn’t going anywhere.
However, the trading volume is picking up, gaining 15.44% in the last 24 hours. This could be an indication of a coming relief, since it shows the availability of liquidity and activity on the network.
This doesn’t mean that the token is safe though, unless it can find a support to slow the decline. For now, the price remains above $1.10, which is the next support level that if lost, could lead to further decline. Breaking below $1 could cause a crash to $0.8, and maybe worse if investors continue to sell.
Interest in TON waning
The increasing sale pressure clearly shows that investors are losing interest in TON. It is hardly a surprise though, since TON has not worked on creating more use cases for the token.
The token has survived on speculation long enough like meme coins, but without more real world use cases, the interest cannot be sustained for much longer, and the price could be heading to much lower levels.
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