Toncoin’s price crashed to a key support level as exchange balances and inflation rose, while its burn rate declined.
Tonecoin (TON) fell to $4.80, its lowest level since Nov. 6 last year, and is now 33% below its highest level in November.
Third-party data shows that TON’s price drop coincided with increased exchange inflows, indicating that investors are continuing to sell. Over the past seven days, more than 240,000 TON coins were moved to exchanges.
Additional data from Ton Stat shows that the number of TON coins burned daily is decreasing. On Jan. 28, only 5,805 coins, currently valued at $27,000, were burned, down from this month’s high of 15,000. A declining burn rate is typically a bearish signal, as it suggests fewer coins are being removed from circulation each day.
At the same time, the number of newly minted TON coins is increasing, pushing annual inflation to its highest level in almost six months. TON’s inflation rate rose to 0.37%, up from last year’s low of 0.337%.
The TON blockchain ecosystem is also under pressure, with many popular tokens, including Notcoin (NOT) and Hamster Kombat (HMSTR) hovering near their all-time lows.
Toncoin price crashed to a key support level
The daily chart shows that TON’s price fell to $4.70, extending a downtrend that began after reaching a high of $8.30 in June last year. This decline is significant as it aligns with the lower boundary of a symmetrical triangle pattern.
TON has also formed a death cross pattern, where the 50-day and 200-day Exponential Moving Averages have crossed. Historically, this is considered one of the most bearish patterns in the market.
Oscillators like the Relative Strength Index and the Money Flow Index are also trending downward. As a result, Toncoin’s price risks dropping further to the 61.8% Fibonacci retracement level at $3.78, which is approximately 22% below its current level.
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