- Toncoin is undergoing intense selling pressure with technical confirmations.
- The coin is a good investment, backed by heavy whale activities and a thriving gaming ecosystem.
After a historic move in June, when its price jumped by over 20%, Toncoin (TON) has recorded a series of drastic plunges in the past few weeks. In keeping with the bearish trends from July, when it fell 11.7% for the month, its showing thus far this month has shown no difference.
Toncoin sensationally carved a seat for itself among the top 10 most capitalized assets. With massive whale and retail embrace, the coin has grown by 163% Year-to-Date (YTD). Despite its historically positive performance, TON is now at risk of an usual fall from grace.
Toncoin Rising Wedge Pattern Breakdown
A scary discovery becomes apparent when viewing the TON/USDT price chart. This is best showcased in the negative breakdown from a rising wedge pattern the coin has formed over the past few months.
A rising wedge is a bearish pattern formed on a chart by two upward converging trend lines. While this pattern can mark the reversal or continuation of a trend, in the case of Toncoin, the excessive selloff is dragging the price down.
At the time of writing, TON is changing hands for $6.133, down by 6.99% in the past 24 hours. In the trailing 7 day period, the coin has dropped by 8.95% with a 15.08% slump in the past 30 days.
This drop is rather surprising as the Toncoin ecosystem is growing quickly. One standout trend for Toncoin is its growing partnership in the Web3 world. As CNF noted in our earlier report, Toncoin inked a partnership with Trust Wallet, a trend that significantly boosted sentiments.
While positive ecosystem updates are emerging daily on Toncoin, the correlation with Bitcoin is weighing down on the coin. With the fading of the hype that trailed the Bitcoin Conference, investors have initiated serious withdrawals from the market. With Bitcoin price dropping to the $61,731.95 level, Toncoin got an anchor to peg its drop on.
If the trends are not reversed soon, TON may slip further to $5 in the mid-term.
Prospect of Toncoin as Investment Asset: Whale Embrace and Gaming Evolution
The Toncoin ecosystem is growing at a fast pace. This growth is attributed to the massive adoption of Telegram-based Tap-2-Earn (T2E) games. As we discussed earlier, one of the Toncoin-associated games, Hamster Kombat surpassed 239 million user milestone in just 3 months.
Besides this gaming evolution, TON presents itself as a viable asset to HODL, considering the actions of its whales. Sentiment data revealed an increase in the number of whales with over 1 billion tons. This is significant as it proves the large capital buyers have confidence in the coin’s prospects.
This current market outlook has positioned Toncoin as one of the few tokens with the right backing. While the timeline of this selloff is not predictable, the asset might rebound quickly.
