The Toncoin price has lost momentum this month despite vast engagement in the top tap-to-earn platforms like Hamster Kombat, Pixelverse, and TapSwap. On Wednesday, the TON token dropped to $6.90, down from the year-to-date high of $8.50.
TON transactions are falling
The TON Blockchain is one of the most active networks in the industry. Its DeFi ecosystem has soared, with its total value locked jumping to over $765 million. It has grown to become the 11th biggest player in the DeFi industry.
At the same time, many tap-to-earn developers have selected the network as their preferred blockchain. This includes networks like Hamster Kombat, TapSwap, Notcoin, and Pixelverse, which have become billion-dollar entities.
Despite this growth, on-chain data shows that TON’s daily transactions are falling. On Tuesday, the network had over 3.77 million transactions, down from the year-to-date high of over 7 million.
While the number of on-chain activated wallets has risen to over 10.8 million, activations per day have fallen to less than 36,000. Active wallets per day have fallen to 330,000.
Toncoin price is at risk
As BanklessTimes warned recently, the TON price rally lacked breadth because it happened in a low-volume environment. This has not changed as the token’s volume in the past 24 hours stood at $291 million, a small figure for a cryptocurrency worth $17 billion.
This volume was lower than that of smaller tokens such as Tron, Shiba Inu, Litecoin, Dogwifhat, and Pepe.
At the same time, the Toncoin price formed a highly bearish chart pattern known as a rising wedge. This pattern is formed when an asset has formed two converging trendlines. It results in a bearish breakout when the price moves below the lower side of the wedge, which has already happened.
Worse, the token has retested the lower line and dropped below the 50-day moving average. Oscillators like the Relative Strength Index (RSI) and the MACD have all pointed downwards. It has also formed a pattern of head and shoulders.
Therefore, the outlook for TON is bearish. The next reference level to watch is $6.38, its lowest swing on July 5th.
