Toncoin Falls 22.7% in a Week: Will the Crash Extend To $3?

As most altcoins struggle to maintain their bullish positions, Toncoin continues its downward spiral. Ever since the arrest of Telegram CEO, the downfall in TON prices seems unstoppable.

With a 22.70% drop in the past 7 days, Toncoin has broken below its crucial $4 support level. Currently, TON trades at $3.78, reflecting a 2.71% drop in the past 24 hours.

Amid growing market uncertainty, will the downfall in Toncoin result in a plunge below $3.50? Let’s find out.

Weekly Chart Analysis: Loss of Key Support Levels

In the weekly chart, Toncoin price action reveals a bearish breakout from a bullish flag pattern. With a 17.64% drop last week, TON lost its local support trendline and the 100-week EMA line.

The downtrend extended to create a 7-day low at $2.99, showing extreme bearish pressure. However, after the lower price action, Toncoin has bounced back to $3.78.

Despite this, the failure to hold a strong bullish setup with upside potential warns of a massive crash. Furthermore, the MACD and signal lines have given a negative crossover, with a continuous surge in negative histograms, reinforcing bearish sentiment.

Short-Term Trend: Hope in the 4-Hour Chart?

In the 4-hour chart, the lower price rejection hints at a potential bullish opportunity. Toncoin has formed a descending triangle pattern, stabilizing above the $3.70 level.

Additionally, the 4-hour MACD and signal lines maintain a positive trend, suggesting a short-term recovery attempt. If Toncoin manages to surpass the 20-week EMA line and the overhead trendline, a reversal rally could trigger a significant recovery.

On the flip side, if the 4-hour descending triangle pattern breaks down, Toncoin could plunge toward the $3 psychological support level.

Whale Activity: A Sell Signal for Toncoin?

As bearish sentiment lingers over Toncoin, crypto analyst Ali Martinez has highlighted another sell signal. In a recent X post, Ali pointed out that over the past week, 1.43 million Toncoin has moved out of whale wallets.

With declining whale confidence, Toncoin prices may drop further if market volatility persists. The sell-off suggests a weakening long-term sentiment, increasing the possibility of breaking below key support levels.

Conclusion: Will Toncoin Fall Below $3.50 or Recover?

If TON fails to reclaim the 20-week EMA line, the next major support sits at $3.00. However, if bulls manage to push Toncoin above the overhead trendline, a recovery toward $4 could be in play.