Toncoin (TON) is facing a price decline as bearish sentiment prevails in the market. The coin is currently trading at $5.11, down 4% from the last week.

The Telegram-linked asset has seen a sharp drop in buying activity, with key indicators such as daily active and new addresses, large transaction count and profitable transactions showing signs of weakness.

Market rejects Toncoin

BeinCrypto’s assessment of Toncoin’s on-chain performance revealed a drop in its network activity. Over the past week, the daily count of unique addresses that conducted at least one transaction involving the crypto has decreased by 43%. Similarly, new demand for TON has also seen a 48% drop during this period.

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Toncoin Daily Active Addresses. Source: IntoTheBlock

In short, fewer active and new addresses suggest lower demand for the altcoin, which could lead to a price drop as fewer users trade or hold it. Thus, traders and investors interpret a drop in network activity as a negative indicator. They see it as a sign that momentum is weakening, which could trigger further price drops.

Some major TON holders have exited the market, as evidenced by the drop in the daily count of large transactions. Data from IntoTheBlock shows that the daily count of TON transactions valued between $100,000 and $1 million has decreased by 24% over the past month. During the same period, larger transactions, above $10 million, have plummeted by 23%.

A drop in an asset’s large transaction count is a bearish signal. When retail investors notice that large investors or whales are reducing their trading activity, it often erodes their confidence, leading to more selling activity and contributing to sustained price declines.

Toncoin Large Transaction Count. Source: IntoTheBlock

TON Price Prediction

At the current price, TON is trading just below the support at $5.25. The inability of TON bulls to defend this level confirms that the downtrend may continue if market sentiment does not change.

If the decline continues, the price of TON could drop to $4.42, a value last seen on September 6.

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Toncoin Price Analysis. Source: TradingView

However, if the broader market turns bullish and demand for the crypto increases, TON price could rise above the support levels and move towards the next key resistance at $6.81.

The article Bears dominate and Toncoin (TON) faces strong bearish pressure appeared first on BeInCrypto Brasil.