In recent weeks, Toncoin (TON) has drawn significant attention from cryptocurrency analysts as its price continues on a downward trend. Among those dissecting Toncoin’s price movement is Alan Santana, a well-regarded TradingView analyst, who has issued a cautionary forecast for the coin. According to Santana, Toncoin is unlikely to reverse its bearish momentum soon and may experience further declines in the near term.
A Clear Downtrend – Santana’s Take On Toncoin’s Market Signals
Santana’s analysis suggests that Toncoin’s price action points to a continued downturn. “There is no need to guess where the TON price is heading,” Santana stated, noting that current market indicators clearly signal a bearish outlook. This assertion reflects the broader pessimistic sentiment in the market, which appears supported by several technical indicators.
According to Santana, Toncoin recently witnessed a significant spike in bearish trading volume—the highest in over three weeks. This surge in sell-offs has reinforced Toncoin’s bearish trend, signaling to traders that further losses may be on the horizon. Santana added, “Even if I were a long-term holder, I would sell as much as possible with the intention of buying again when prices are lower.” His advice underscores his skepticism about Toncoin’s short-term recovery prospects.
Volume and Open Interest – Further Indicators of Market Decline
Supporting Santana’s prediction is recent data from CoinGlass, which tracks trading metrics across major exchanges. Despite a Binance TON/USDT Long/Short Ratio of 2.9339—suggesting there are still more long positions than shorts—Toncoin’s Open Interest dropped by 0.54%, indicating decreased trading interest among market participants. The coin’s trading volume has also seen a 28.72% reduction, equating to $63.98 million, suggesting a continued waning interest among traders.
This decline in volume and Open Interest paints a stark picture of Toncoin’s market environment. Santana’s analysis, backed by these market indicators, points to a lack of upward momentum that would be necessary for a price reversal. With TON currently trading around $4.95 and showing a slight 0.44% increase over the last 24 hours, the weekly chart remains in bearish territory, hinting that more losses could follow.
Toncoin’s DeFi and Blockchain Activity – A Silver Lining?
One of the few encouraging signs for Toncoin lies in its on-chain activity. Data from CNF shows that Toncoin maintains a robust presence on the blockchain, holding an impressive 14.38% of active blockchain addresses. This level of activity indicates that TON still holds value for users within the decentralized finance (DeFi) ecosystem, even as its price slides. However, this positive development has not been enough to offset the more extensive market downturn.
Also Read: Toncoin Holders Shift By 15% – Can TON Break $5.37 For A Rally To $6?
Toncoin’s decline since June 2024 has led analysts like Santana to speculate that the coin could drop to around $2—a significant fall from its current price levels. Such a decrease would represent more than a 50% decline, suggesting that investors should exercise caution if they consider holding TON.
As Toncoin grapples with this negative momentum, analysts and investors alike are keeping a close eye on whether a rebound could eventually emerge. For now, the technical indicators tell a story of cautious trading, urging potential buyers to wait for lower entry points, while existing holders may consider cutting their losses as the downtrend persists.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
