Over the past week, more than 240,000 TON tokens have been moved to exchanges, indicating increased selling pressure. Simultaneously, the daily burn rate has dropped from 15,000 tokens to just 5,805 on January 28. This decline means fewer coins are being removed from circulation, reducing the scarcity effect that supports price stability.
Toncoin’s inflation rate has surged to 0.37%, the highest level in nearly six months, further pressuring prices. Combined with reduced burning, this increase in circulating supply could accelerate TON’s downward trajectory.
TON has formed a death cross on the daily chart, where the 50-day and 200-day EMAs have crossed, a historically bearish signal. The Relative Strength Index (RSI) and Money Flow Index (MFI) are also trending downward, indicating weakening momentum.
Toncoin is currently trading around $4.70, down 33% from its November peak. If the bearish trend continues, the next major support level sits at the 61.8% Fibonacci retracement zone of $3.78, representing a potential 22% further decline.
Investors should monitor these key technical and fundamental indicators as Toncoin navigates increasing market pressure.
Toncoin