The price of Toncoin crashed hard this week, erasing some of the gains made in November. TON plunged to a low of $5.20, its lowest level since November 20 and 27% below the highest level this month. Its retreat has brought its valuation to about $14 billion.
Toncoin price falls amid weak on-chain metrics
Toncoin token has remained under pressure in the past few months. It has never recovered since Pavel Durov’s arrest in France, meaning that it has lagged behind other cryptocurrencies.
There are signs that Toncoin’s ecosystem was not doing well, as most of its tokens crashed. The biggest disappointment has been Hamster Kombat, the viral tap-to-earn game that was listed a few months ago. Since then, the fully diluted valuation has dropped from over $700 million to about $330 million.
Other tokens in the ecosystem like Catizen, DOGS, and Notcoin have also retreated and underperformed other mainstream coins. This retreat has mirrored that of other popular “to earn” tokens like Sweatcoin, Decentraland, and Axie Infinity.
Meanwhile, ecosystem data shows that its growth has continued to underperform its peers. The number of active wallets in TON has dropped to 6.8 million, its lowest level since September. Daily on-chain wallet activations have dropped to over 64,000, lower than the year-to-date high of over 600,000.
Another data worth noting is that the total value locked (TVL) in the TON ecosystem has dropped to $280 million from over $750 million earlier this year. The biggest players in the ecosystem are DeFi platforms like Tonstakers, STON.fi, Bemo, and DeDust.
Toncoin’s ongoing retreat has also coincided with the ongoing pullback of other cryptocurrencies like Bitcoin and Shiba Inu.
TON price analysis
TON chart by TradingView
The daily chart shows that the TON price has suffered a harsh reversal in the past few days. It has dropped from about $7 to a low of $5.20, its lowest point since November 14.
The TON price has moved to the 50-day and 100-day moving averages and is slightly below the 23.6% retracement. Therefore, the coin’s path of least resistance is neutral for now.
A drop below the support at $5.20, its lowest point on Monday will point to more downside, potentially to the key support at $4.6, its lowest level since August this year. More downside will be confirmed if it drops below that level. On the flip side, a move above the key resistance point at $6 will point to more gains.
