Toncoin experienced a significant decline in price on Tuesday as the ongoing altcoin market downturn persisted. It dropped by nearly 10%, hitting a low of $7, marking its lowest level since June 12th. Currently, Toncoin has fallen by more than 15% from its peak, indicating a correction phase and moving closer to potential crash territory.
On Tuesday, Toncoin’s token joined other altcoins in a deep sell-off. Bitcoin also saw a sharp decline below $65,000, while popular tokens like Solana, Fantom, Worldcoin, Brett, and Chilliz retreated by more than 15%. Typically, altcoins tend to follow Bitcoin’s downward trend.
Nevertheless, Toncoin’s ecosystem is showing some resilience. According to data from DeFi Llama, the total value locked (TVL) in the DeFi ecosystem has exceeded $940 million, positioning Toncoin as the 11th largest network in the industry, surpassing networks like Polygon, Sui, Cronos, and Near Protocol. Additionally, the number of TON addresses has recently reached a record high.
The upcoming launch of TapSwap, a prominent Telegram tap-to-earn platform, could serve as a potential catalyst for the Toncoin price. Developers have highlighted Toncoin’s reputation for speed and low transaction costs as key factors in their decision to partner with the blockchain.
TapSwap, a major competitor to Notcoin, which achieved a market cap of over $1.8 billion, has seen its user base grow to over 53 million. Daily users on TapSwap have surged to over 17.9 million, making it one of the most active social platforms in the industry. Users on TapSwap can earn coins simply by tapping on a button, with the option to redeem them for fiat currencies on exchanges in the future.
Analyzing the TON daily chart, it is evident that the token has experienced a significant reversal amid the ongoing crypto sell-off. This downturn occurred after the formation of a rising wedge chart pattern, with the token now trading below this pattern and the 25-day moving average. The Relative Strength Index (RSI) for Toncoin has dropped below the neutral level of 50, indicating a potential continuation of the sell-off towards the key support level at $6, the lowest point reached on May 23rd. Investors will be monitoring for a potential bounce back and further confirmation of a sustained rally in the future.