Toncoin's price sharply decreased after Tapswap selected another blockchain. We explore the impact of this decision and Toncoin's current market trends.
Tapswap's decision and its impact on Toncoin
Toncoin was trading at $3.8515, 55% below its all-time high, following Tapswap's decision to choose BSC Chain for its airdrop due to BNB's larger ecosystem, lower costs, and greater user base. Tapswap opted for BNB as other tokens on the TON Blockchain, such as Hamster Kombat, Catizen, and DOGS, sharply fell, indicating an attempt to avoid similar declines.
Recovery on the TON Blockchain
Positively, on-chain data signals TON network's strengthening. The number of Toncoins burned increased to 7,558 from the month's low of 4,100. Token burns can aid price appreciation by reducing tokens in circulation. Network activity is also increasing: fees rose to 15,117 TON, the highest since Jan. 24, and daily transactions climbed to nearly 4 million.
Toncoin price analysis
The daily chart shows TON peaked at $8.30 in June, then fell 53% to $3.7, breaching a key support level of $4.5380. A 'death cross' pattern has formed, indicating bearish control. Currently, TON hovers at the 61.8% Fibonacci retracement level, with a drop below potentially signaling further declines to a low of $2.9875.
While Toncoin faces setbacks due to Tapswap's shift, signs of network activity improvement may stabilize the long-term outlook.
