• Toncoin faces a potential 17% decline, testing key support levels.
  • Negative funding rates and DMI show sellers dominating the market.
  • Buyers must defend critical support to prevent further price drops.

Toncoin (TON) is on shaky ground, testing a crucial support level. With a 10% drop over the past week, the token shows no signs of stabilizing. Many traders wonder: Will the price hold, or will it sink even further? Let’s break down why Toncoin could face another 17% drop soon.

Bearish Signals Dominate the Market

Toncoin’s funding rate remains negative, sitting at -0.0068%. This means traders lack confidence in a recovery. Many are betting against TON, expecting a further price decline . When more traders short an asset, selling pressure increases.

Think of the funding rate like a market thermometer. When it’s negative, the temperature drops, signaling a bearish outlook. Traders shorting TON reflect a pessimistic mood, making a rebound seem less likely.

Further amplifying concerns, the Directional Movement Index (DMI) shows sellers in control. The index, which measures buying and selling pressure, places sellers firmly in the lead. 

The positive directional indicator lags behind the negative one, a clear signal of weakness. In this scenario, sellers are outmuscling buyers, adding more pressure to the downside.

Toncoin’s daily active addresses surge to 3.8M in September

CryptoQuant contributor IT Tech reported on X that Telegram's Open Network (TON) daily active addresses surged to 3.8 million by late September, up from 2.2 million in August, reflecting increased user engagement and… pic.twitter.com/1jFAzvFuah

— CoinNess Global (@CoinnessGL) October 4, 2024

On the brighter side, a surge in daily active addresses paint a bullish outlook for TON, as the above post highlights. CryptoQuant contributor IT Tech reported on X that Telegram’s Open Network (TON) daily active addresses surged to 3.8 million in late September, up from 2.2 million in August.

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Will Buyers Step Up Again?

Currently trading at $5.36, the price of TON hovers near a critical support line that has held since March. Earlier in September, buyers managed to protect this level, keeping the token from a steep fall. 

If that happens again, TON could rally toward resistance at $7.96. However, if buyers fail to defend this support, the outlook worsens. A 17% drop would send TON to $4.43, erasing hopes for a swift recovery.

Toncoin faces a critical moment, where every move feels like a tipping point. Negative signals keep piling up, and sellers continue to dominate. With the DMI showing sellers in control and the funding rate reflecting pessimism, the path forward looks uncertain.

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