Toncoin Price Prediction as the TON Network Hits Important Milestone

Home News Toncoin Price is at Risk as Rising Wedge, Falling Open Interest

Toncoin Price is at Risk as Rising Wedge, Falling Open Interest

Crispus Nyaga

July 30th, 2024

Editor:

Joseph Alalade

Toncoin price has moved into a bear market, falling by more than 20% from its highest level in June. The TON token was trading at $6.62, its lowest point since July 5th. Its market cap has moved to over $16.6 billion, down from the all-time high of $25 billion. The Toncoin token has dropped sharply despite some notable catalysts in the ecosystem. The biggest catalyst is the upcoming Hamster Kombat, TapSwap, and Catizen token launches. In theory, these launches should bring millions of users to the network since they will all use the TON blockchain. Additionally, TON has scaled up the blockchain ladder and become the 11th biggest chain in the industry. Over time, it has flipped some of the most notable chains in the industry, such as Cardano, Near, and Optimism.

Toncoin price rising wedge

TON chart by TradingView Nevertheless, Tocoin faces two main risks that could push it downwards in the coming weeks. First, Toncoin has formed a rising wedge pattern on the daily chart. This pattern, shown in pink above, is characterized by two converging trendlines. In most cases, this pattern leads to a strong bearish breakout because it is usually a sign of waning demand for an asset. This breakdown has already happened, as BanklessTimes predicted, and the token has moved below the 50-day moving average, meaning that bears are in control. If it works out well, the falling wedge could drag the TON price much lower in the coming weeks, with the next point to watch is at $5.

Toncoin falling open interest

TON chart by CoinGlass The other risk the Toncoin price faces is the falling open interest in the futures market. Data by CoinGlass shows that the token’s futures open interest peaked at over $350 million earlier this month. It has then continued making lower lows and higher lows, a popular bearish sign. It dropped to $244 million on Monday, its lowest point since June 14. Open interest is an important metric that measures the volume of positions in the futures market. A higher figure usually indicates a strong demand for an asset. For example, Bitcoin (BTC) had its highest open interest on record on Monday as it jumped above $70,000.

Contributors

Crispus Nyaga

Writer

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.

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