The Open Network’s (TON) native cryptocurrency, Toncoin, has dropped to a new weekly low, $6.85. This represents a drop of almost 10% in the last week.
The downturn was fueled by an increase in selling pressure, and the demand from traders for short positions. This has overshadowed positive developments.
The indicators point towards a continued Toncoin drop
Toncoin’s price fell by 3.19 % in the last 24 hours, while trading volumes increased by 6 %. The rising trading volume and falling prices produce a negative divergence that suggests further devaluation could be imminent.
Analysts predict that the price of Toncoin could fall further if this current downward trend continues. It may even reach $6.35. Toncoin’s funding rate, below -0.03%, confirms the negative mood.
Source : CoinGlass
Negative funding rates indicate that traders have taken more short positions in anticipation of further price declines.
The trend of the cryptocurrencies is consistent with an overall bearish outlook. It has dropped below its moving 20-day average. This can be a sign that a trend or trend may continue.
Source TradingView
TON is partnering with Animoca Brands and Moca Network.
Note that Toncoin has a negative trend despite a partnership of $20 million between The Open Network blockchain (TON), Animoca Brands Moca Network and MOCA Foundation.
This partnership aims to drive mass adoption of Web3 through several initiatives including the creation a Toncoin and MOCA reserve of $20 million.
Reserves are designed to encourage developer and user participation within the Open Network eco-system.
The Open League and hackathons are key initiatives of this partnership. Accelerator programs that foster cross-functional growth will also be a part.
This collaboration will be a success if the “TON Society ID” is introduced. It’s a decentralized credential which allows users to take advantage of governance on the Blockchain. The new system aims at reaching 500,000,000 TON users before 2028.
The partnership also includes the creation of a reputation-scoring system, as well as the integration of Moca ID with the Realm Network SDK and Telegram’s large user base.
These entities’ combined efforts are likely to provide new users and funds to the TON ecosystem. This could potentially revive interest in and activity on this blockchain.
The recent collaboration highlights Web3’s and Blockchain technologies growing ambition, but the current market conditions indicate that we need to be vigilant about future price changes.
Toncoin’s price could rise to $7.09 if the sentiment on the market changes and there is an increase in demand. If the current market sentiment continues, then the outlook is cautious for Toncoin in the near future.
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