Blockchain analytics platform CryptoQuant has pointed out a deleveraging trend on Toncoin (TON). According to CryptoQuant researcher Joao Wedson, this process might be a sign of opportunity for the coin.
Signs of TON Deleveraging
Wedson highlighted the sharp decline in the Total Value Locked (TVL) of DEXs, CEXs, Derivatives, and Options as evidence of this event. This decline in TON indicates investors are growing weary and getting discouraged by the coin's outlook. As a result, some pessimistic investors have liquidated their positions to reduce their exposure to TON. Conversely, the analyst pointed out that this could produce a positive signal for Toncoin whales. Historically, retail investors' despair and loss of hope usually herald huge buying opportunities. It opens larger players to a favorable environment for massive strategic accumulation at a discount. The increase in the Staking TVL Ratio suggests that many investors remain long-term optimistic and prefer to lock their tokens in staking instead of selling them.
Current State of the TON Market
In the coming weeks, there may be a redistribution of supply, possibly paving the way for a future price increase for TON. At press time, the price of TON was trading at $4.82, following a 2.14% dip within the last 24 hours, with a market capitalization of $12 billion. Trading volume declined by 15.88% to $134.16 million. Toncoin is experiencing difficulties breaking due to instability around its current support level. Over the past week, more than 240,000 TON moved to exchanges, indicating building selling pressure. Market observers do not see any price recovery in the next couple of days. Additionally, the number of Toncoin addresses in profits has hit record lows, raising concerns about the future price trajectory.
New Rebound Catalysts for TON
Technical analysts have suggested that TON could signal the start of a new rally if it rose above $5.78. More optimistic analysts have predicted that the coin could hit $7.43, with long-term projections that it will tip TON to reach $17.37. Meanwhile, the TON Foundation recently announced plans to expand in the U.S. market, supported by pro-crypto policies. If successful, TON may gain greater exposure in the country. Additionally, core developers aim to explore Decentralized Finance (DeFi) growth prospects, including a mainnet update called “Accelerator,” aimed at enhancing stability, efficiency, and scalability.
The strategic initiatives of the Toncoin ecosystem could serve as catalysts for future growth despite the current decline.
