Toncoin's price has significantly dropped to a key support level, raising concerns among market participants.
Current Market Situation of Toncoin
Toncoin's price fell to $4.80 after peaking last November. This decline is accompanied by an increase in exchange reserves, indicating ongoing sell-offs. Over the past seven days, more than 240,000 TON tokens have been moved to exchanges.
Toncoin Horizon: Burning and Inflation
According to Ton Stat data, the daily number of burned TON tokens is decreasing. On January 28, only 5,805 coins were burned, significantly less than the month's high of 15,000. This trend is typically considered bearish. Simultaneously, the number of newly minted TON tokens is rising, increasing annual inflation to 0.37%, the highest in nearly six months.
Technical Analysis and Forecasts
The daily chart shows that TON's price fell to $4.70, continuing a downtrend. A 'death cross' pattern has formed as the 50-day and 200-day moving averages crossed. Oscillators, such as the Relative Strength Index and Money Flow Index, suggest potential further declines to $3.78.
The decline in Toncoin's price is attributed to various factors, including increasing exchange volumes and decreasing token burn rate, creating pressure on the price. Whether Toncoin will rebound remains to be seen.
