No Business Before 'Profit Taking'! Toncoin Plunges 10% in a Day Amid Ecosystem Woes

▲ Toncoin (TON) ©

Toncoin (TON) has recorded a more than 10% plunge in a single day, leaving its recent steep rise behind, as large-scale profit-taking and security incidents compounded, increasing investor anxiety.

According to CoinMarketCap, a cryptocurrency market data aggregator, on May 14 (local time), Toncoin (TON) price plummeted by 10.82% over the past 24 hours, reaching $2.06, significantly underperforming the market average. The key reasons for this decline are negative sentiment in the derivatives market and strong on-chain selling pressure. With the current funding rate at -0.069% and open interest maintaining at $90.6 million, it indicates that short-position traders are not closing their positions and continue to bet on further declines. The fact that net inflows to exchanges have turned positive is also strong evidence that spot selling pressure is continuously weighing down the price.

Fatigue from the short-term surge and internal ecosystem woes also fueled the decline. Toncoin rose parabolically from around $1.30 to near $3.00 earlier this month, but as momentum slowed, quick-acting investors moved to secure profits, leading to a downtrend. Furthermore, reports of a $2,800,000 exploit on the TON cross-chain layer and widespread concerns about presale scams within the ecosystem severely eroded investor confidence, acting as a fatal blow.

From a technical analysis perspective, Toncoin is currently at a critical inflection point, testing the psychological support level of $2.00. The downtrend has accelerated after falling below the 7-day moving average of $2.26, and with the Relative Strength Index (RSI) at 59, there is still room for further price correction before entering the oversold zone. If the current derivatives-driven selling pressure does not subside, price recovery is unlikely in the short term.

Moving forward, market attention is focused on whether the $2.00 support level holds. If selling pressure eases and this range is maintained, there is a high probability of forming a base through sideways consolidation between $2.00 and $2.30. However, if $2.00 breaks, there is a risk of entering a deeper correction phase where the decline could extend to the major support level around $1.80. Experts advise a cautious approach, monitoring changes in exchange net inflow data to confirm signs of selling pressure exhaustion.

In conclusion, Toncoin is struggling to secure its support level, facing a double whammy of natural correction after an overheated rally and ecosystem woes. Whether it stabilizes at the $2.00 level will be a watershed moment determining its future mid-to-long-term trend, and investors should closely monitor market conditions, being mindful of the potential for further stop-loss selling or liquidation events.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*