The Toncoin (TON) price fell to $4,80, its lowest since November 6 last year. Now token is trading 33% below its peak, also set in November 2024.
The drop in TON's price coincided with an increase in cryptocurrency inflows to exchanges. Over the past seven days, more than 240 Toncoins have been transferred to exchanges, indicating that investors are continuing to sell.
Another prerequisite for the asset’s price drop is the slowdown in the rate of TON burning. According to Ton Stat, only 28 coins were burned on January 5805, which is much lower than the maximum of 15 Toncoins destroyed in one day in January. A slowdown in the rate of burning is usually a bearish signal, as it means that fewer coins are being removed from circulation each day. At the same time, the number of new TON coins is increasing.
This has driven TON's annual inflation rate up to 0,37%, compared to last year's low of 0,337%.
Technical indicators also point to a bearish scenario. The Toncoin price chart has formed a “death cross” pattern, in which the 50-day and 200-day exponential moving averages intersected. Historically, this pattern is considered one of the most bearish on the market.
Oscillators such as the Relative Strength Index and the Money Flow Index are also showing a bearish trend. As a result, Toncoin’s price could fall to the 61,8% Fibonacci retracement level of $3,78, which is about 22% below the current level.
