Toncoin price trended lower on Tuesday as the altcoin meltdown continued. It plunged by almost 10%, bottoming at $7, its lowest level since June 12th. Toncoin is now down more than 15% from its highest level, meaning it has moved into a correction and is trending towards crash territory.
Toncoin’s token joined other altcoins on Tuesday that moved into a deep sell-off. Bitcoin price nosedived below $65,000 while notable tokens like Solana, Fantom, Worldcoin, Brett, and Chilliz retreated by over 15%. Historically, altcoins follow Bitcoin’s lead lower.
Still, Toncoin’s ecosystem is doing modestly well. Data compiled by DeFi Llama shows that the total value locked (TVL) in the DeFi ecosystem stood at over $940 million, making it the 11th largest network in the industry. It has passed other networks like Polygon, Sui, Cronos, and Near Protocol. Also, the number of TON addresses have surged to a record high recently.
The other possible catalyst for the Toncoin price will be the upcoming launch of TapSwap, the popular Telegram tap-to-earn platform. In a recent statement, the developers noted that they had selected Toncoin, a blockchain known for its speed and low transaction costs.
TapSwap is the biggest competitor to Notcoin, which debuted recently and attained a market cap of over $1.8 billion. Data on its app shows that the number of users has grown to over 53 million. In my article last week, the network had over 49 million users.
TapSwap’s daily users have jumped to over 17.9 million users, making it the most active social platform in the industry.
Like Notcoin, TapSwap users generate coins by just tapping on the button. Ultimately, the token will be launched in exchanges, where users can redeem them for fiat currencies.
Toncoin price prediction
TON daily chart
On the daily chart, we see that the TON price has suffered a harsh reversal as the crypto sell-off intensifies. This sell-off happened after the token formed a rising wedge chart pattern. It has now moved slightly below the lower side of this pattern and the 25-day moving average.
Toncoin token’s Relative Strength Index (RSI) has now dipped below the neutral point at 50. Therefore, this sell-off will likely continue for a while as sellers target the key support at $6, its lowest point on May 23rd. At that point, investors will look for a bounce back and await further confirmation if a rally can be sustained or not.
