Amid the ongoing market corrections, the Toncoin price has experienced significant volatility. The altcoin indicates a steep decline from a recent high, dropping below the $7 support level. The bearish trend that dominated the market throughout the day reflects strong selling pressure, particularly after a brief peak early in the day.
This downward movement suggests that traders are reacting to broader market conditions, leading to a shift in sentiment and contributing to the sustained decline in Toncoin’s value.
Toncoin Price Tumbles Amid Open Interest Declines
According to Coinglass data, the Toncoin price is experiencing a bearish trend, with derivatives metrics signalling significant declines. The volume of trades has dropped by 14%, amounting to $635.97 million. This decline in trading activity indicates a weakening interest among traders and investors, potentially contributing to the downward pressure on the asset’s price.
Additionally, open interest has decreased by 2.28%, now standing at $248.58 million. With both trading volume and open interest declining, the bearish sentiment surrounding Toncoin could continue, further impacting its market performance.
Over the past 24 hours, The layer 1 cryptocurrency has experienced a notable price decline. In the past 30 days, the altcoin has decreased approximately 12%, reflecting a broader downward trend.
At the time of writing, the TON price hovered at $6.43 during the European trading session, making a 4% dip.
According to CoinMarketCap data, Despite the price decrease, the trading volume over the past 24 hours surged by 19%, reaching $548 million. This increase in volume indicates heightened trading activity, possibly due to market participants reacting to the price drop.
Toncoin shows strong bearish momentum in the current market, signalling a potential downtrend. If market sentiment weakens, the cryptocurrency might find support around $6.
Binance Introduces New Subscription Quota for Toncoin
Binance announced on Friday its plan to introduce an additional subscription quota, limiting each user to a maximum of 50 TON. The initial farming quota, launched earlier, quickly became oversubscribed within minutes, signalling strong demand from users.
Due to overwhelming demand, the Toncoin $TON Super Earn was fully subscribed in minutes.
We’re launching an additional quota at 12 pm UTC— max subscription capped at 50 $TON per user.
Act fast to secure your spot!
Details here 👉 https://t.co/k7OK4rkKMP pic.twitter.com/KerkZSQfwe
— Binance (@binance) August 16, 2024
This new measure aims to accommodate more participants while ensuring fair access. Following the overwhelming response to the initial offering, the decision reflects Binance’s commitment to providing balanced opportunities for its user base.
The 4-hour technical indicators for TON/USDT suggest a downward trend. The Moving Average Convergence Divergence (MACD) indicator reveals a neutral to slightly bearish sentiment. The MACD line is above the signal line, though the histogram shows declining bullish momentum, with the most recent bar turning negative.
Conversely, a shift towards bullish sentiment could drive a recovery, potentially pushing the Toncoin price past the $7 resistance. This upward momentum may lead to a further rise, targeting the $10 mark.
Frequently Asked Questions (FAQs)
Binance’s decision to limit Toncoin purchases to 50 per user came after a high demand overwhelmed initial offerings. This restriction may contribute to current volatility and trading dynamics.
Given the bearish momentum and declining market engagement, Toncoin could continue to see a downtrend, with potential support around the $6 level unless market conditions improve.
If market sentiment shifts positively and bullish momentum returns, there’s potential for Toncoin to rebound past the $7 resistance level. However, this recovery depends heavily on broader market conditions and investor confidence.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/toncoin-price-plunges-as-binance-announces-new-purchase-limits-whats-next-for-ton/
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