Indeed, there's no stopping 'profit-taking'! Toncoin Plummets 10% in a Day as Ecosystem Woes Mount

▲ Toncoin (TON) ©

Toncoin (TON) has recorded a more than 10% plunge in a single day, causing growing investor anxiety, as its recent sharp rally was met with a combination of large-scale profit-taking and a security incident.

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 to $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 funding rate currently at -0.069% and open interest maintaining at $90.6 million, it indicates that short-position traders are continuing to bet on a decline without closing their positions. The shift to positive net inflow to exchanges 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 had risen parabolically from around $1.30 to near $3.00 earlier this month, but as momentum slowed, quick-acting investors began to secure profits, leading to a reversal. Adding to this, the report of a $2,800,000 exploit on the Ton cross-chain layer and growing 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 since 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-led selling pressure does not subside, price recovery is unlikely to be easy for the time being.

The market's attention is now focused on whether the $2.00 support level will hold. If selling pressure eases and this level is maintained, there is a high probability that the price will consolidate 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 dual challenge of natural correction after an overheated rally and ecosystem woes. Whether it settles at the $2.00 mark will be a watershed moment determining its future medium-to-long-term trend, and investors should remain vigilant, paying close attention to market conditions, mindful of the potential for additional stop-loss liquidations or forced liquidations.

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