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Toncoin price continued its strong sell-off as concerns about its ecosystem and network growth persisted.
Toncoin (TON) dropped to the crucial support level of $2.90 on Thursday, down 65% from its highest level in 2024. It has declined for six consecutive weeks and is now trading at its lowest level since March 11.
Toncoin has been in a sharp downturn amid weak on-chain and ecosystem metrics. Most tokens in its ecosystem have plunged more than 80% from their all-time highs, including popular tap-to-earn tokens like Hamster Kombat (HMSTR) and Catizen (CATI).
Tapswap, which recently launched its airdrop, has crashed, bringing its market cap to $2.90 million, a tiny amount for a tap-to-earn game that had over 70 million users.
Network statistics show that the TON Blockchain is struggling. The number of daily transactions has dropped to 2.215 million, significantly lower than the 20 million it processed just a few months ago. Monthly active wallets have also declined to 2.8 million from nearly 5.2 million in February.
This slowdown is largely due to users abandoning the TON Blockchain following the disappointing debut of its tokens.
Further, the total value locked in the TON Blockchain has dropped from over $1 billion in 2024 to $153 million. The weekly volume of transactions in TON’s DEX ecosystem has dropped to just $68 million. This makes it smaller than other chains like Aptos (APT) and the recently launched Unichain.
Toncoin price analysis
The weekly chart shows that TON’s price peaked at $8.2440 in June last year before falling to $2.9155. It recently dropped below the crucial support level of $4.550, which marked the lowest swing in April, September, and November last year.
Toncoin has now reached key support at $2.9155, which was the highest swing in December 2022. It has also moved below the 50-week moving average, while the Stochastic Oscillator has dropped into the oversold zone.
The Average Directional Index has climbed to 27, indicating that the bearish trend is strengthening. As a result, the coin will likely continue declining, with sellers targeting the psychological level of $2.00, 35% below its current price.
This article first appeared at crypto.news
