The Current Market Situation of Toncoin
The market value of Toncoin, a popular cryptocurrency, has experienced an unexpected dip, reaching a noteworthy support level. The shrinkage in prices has seen a decline to $4.80, marking its record lowest since November 6, of the previous year. This current level of Toncoin’s value stands in sharp contrast to its peak state in November, with it now being 33% lower.
Connection Of The Drop In Toncoin Value To The Investment Market
Profiling the market and transaction records, there is a clear indication that this reduction in Toncoin’s price is interlaced with an increased inflow into exchanges. Investors in the cryptocurrency are offloading their shares, resulting in a surplus in the exchange market. The preceding week recorded over 240,000 Toncoin transactions in the respective exchanges.
Reduction In The Daily Toncoin Burn Rate
Our analysis of data using independent sources shows a concerning trend with the number of Toncoin burned daily decreasing over time. On January 28, the number of coins burned barely reached 5,805 coins. These coins cumulatively held a value of $27,000 at the moment. This static is a sharp fall from the highest recorded burn rate in the month which was 15,000 coins. A diminishing burn rate is typically a bearish signal in the market, as fewer coins get removed from circulation daily, causing an oversupply.
Considerable Inflation Rate Of Toncoin
While the burn rate decreases, there is a visible spike in the production of new Toncoin coins. This inflation factor hit high records in close to half a year. Recent statistics show the inflation rate of Toncoin moved to 0.37%, marking an increase from the last year’s record low of 0.337%. The upward trend in the supply of coins is a definitive sign of inflation.
Impact On Associated Cryptocurrencies
Your favorite tokens, including Notcoin and Hamster Kombat also registered a drop in value, reaching their all-time lows. Toncoin’s declining value and inflation rate affects the entire TON blockchain ecosystem, causing similar problems in other parts of the crypto market.
Analyzer’s Perspective On Toncoin Price Crash
The daily chart showcased a record dip in Toncoin’s value reaching $4.70. This downward trend began after it reached peak value at $8.30 in June the prior year. Statisticians have marked this decline as it complements the lower boundary pattern of the symmetrical triangle.
Ominous Patterns And Their Impact
In addition to this, Toncoin has also reported a transition leading towards a death cross pattern, which is where the 50-day and 200-day Exponential Moving Averages cross paths. This pattern holds the reputation for being the most bearish pattern present in the trading market.
Projecting The Toncoin Price Trend
Market oscillators, such as the Relative Strength Index and the Money Flow Index hint at a downward trajectory. As a result, the value of Toncoin faces the risk of further dipping to a 61.8% Fibonacci retracement level at approximately $3.78. This estimated value is roughly 22% lesser than the current scenario, signaling an alarming situation if the trend continues.
