Toncoin price continued its strong sell-off as all the recently airdropped tap-to-earn tokens crashed. It slipped to a low of $5, down by 40% from its highest level this year, making it one of the worst-performing top-20 tokens.
Weak on-chain metrics
Toncoin, the token for the TON Blockchain, slipped as the network’s on-chain metrics continued to disappoint.
Data by TonStat shows that the number of on-chain wallet activations per day dropped to 62,240 on Thursday, down from last month’s high of 284k. It now has over 22.52 million on-chain activated wallets.
Meanwhile, the number of daily active wallets has retreated to 474,494, its lowest level since August 31st.
According to DeFi Llama, TON Blockchain has continued to lose its market share in the decentralized finance (DeFi) industry. Its total value locked (TVL) has retreated from over $600 million a few months ago to $393 million.
Most of this decline happened after Pavel Durov, Telegram and TON Blockchain’s founder was arrested in France.
Toncoin price has also dived as demand for Telegram tap-to-earn and play-to-earn tokens plunged. Popular tokens like Hamster Kombat (HMSTR), Catizen, DOGS, and PizelVerse (PIXFI) have all plunged, costing investors billions.
This sell-off implies that demand for Telegram’s ecosystem will continue waning as more users avoid other games.
Toncoin’s token sell-off has also happened as the crypto fear and greed index moved to the fear zone of 37. Bitcoin has struggled to move above $63,000, while most altcoins have retreated in the last few days.
Read more: Here’s Why Hamster Kombat Price Crash Matters for Pi Network
Toncoin price forecast
Toncoin token peaked at $8.27 on June 15, and has been in a strong sell-off since then. It has retreated by 40% and moved below the 38.2% Fibonacci Retracement level.
Most importantly, TON has formed a death cross chart pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. A death cross is a rare pattern, which often leads to more sell-off.
Oscillators have also pointed downwards, with the Stochastic falling to the oversold point. The MACD indicator has also turned downward, pointing to more downside.
Toncoin has also dropped slightly below the weak, stop & reverse line of the Murrey Math Lines. Therefore, the path of the least resistance for the TON price is bearish, with the next point to watch being at $4.46.
