Toncoin (TON) Remained in a Bear Market and Was at Risk of Forming the Dreaded Death Cross Pattern, Despite Strong On-Chain Metrics

Toncoin (TON) was trading at $5.81 on Monday, Sep. 30, down by over 30% from the year-to-date high.

The price of Toncoin (CRYPTO: TON) remained weak on Monday evening as the token risked forming a death cross pattern. It was trading at $5.81, which was substantially lower than the year-to-date high of $8.3 .

Strong on-chain metricsToncoin price has remained under pressure in the past few months. Still, some strong on-chain metrics are emerging. For example, the number of on-chain activated wallets has risen to over 20.8 million. This is a significant increase from the January low of 1.1 million wallets.

At the same time, the number of Toncoins burned daily has continued to rise, reaching the year-to-day with a huge and phenomenal rise. This rise marks a notable change in the number of Toncoins being burned since the beginning of this month, with the number of Toncoins being burned each day reaching a yearly high of approximately 39,000 Toncoins. Meanwhile, the number of newly minted Toncoins has decreased significantly. This decline coincides with a rise in the number of Toncoins being burned each day, with the number of Toncoins minted since the beginning of this month dropping to 39,000 Toncoins.

The decline in Toncoin price is likely due to the diminishing role of Toncoin in the decentralized finance industry, while its presence in DeFi diminishes. The total value locked in the network has fallen from more than $765 million in early July to $427 million today.

TON used to be a top 10 player in the DeFi industry, but has now fallen to a mid-sized chain around number 20. As a result, smaller chains like Core, Mode, Mantle, and Linea have overtaken TON in recent weeks.

Additionally, the decline in Toncoin price can be seen in the arrest of Pavel Durov in France and the tap-to-earn token. Hamster Kombat, which began airdropping last week, is down about 60% from its highs.

Similarly, Notcoin (NOT) is down 71% and Catizen (CATI) is down 50% from its all-time high. All told, most of the recently launched Telegram tap-to-earn tokens have fallen to record lows.

Meanwhile, the outstanding balance of Toncoin futures contracts fell to $260 million as of the 30th, below this year's high of $360 million. This outstanding balance is the lowest since September 12, indicating waning demand.

Toncoin Price Analysis The Toncoin token price has fallen more than 30% from this year's high, and the 50-day and 200-day exponential moving averages are on the verge of forming a dead cross. The last time this pattern formed was in May of last year, when the stock fell more than 50%.

The TON also has a head-and-shoulders and vaulted pattern. It remains below the first support level on the Andrews Pitchfork Tool and the 23.6% Fibonacci retracement level. Therefore, barring a break above the 50-day and 200-day moving averages, Toncoin could fall to the next major support at the September low of $4.45.

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