Blockchain analytics platform CryptoQuant has pointed out a deleveraging trend on Toncoin (TON). According to CryptoQuant researcher Joao Wedson, the deleveraging process might be a sign of opportunity for the coin.
CryptoQuant Flags Signs of Toncoin (TON) Deleveraging
Wedson highlighted the sharp decline in the Total Value Locked (TVL) of DEXs, CEXs, Derivatives, and Options as evidence of this event.
This TON decline indicates investors are growing weary and getting discouraged by the coin outlook.
As a result, some pessimistic investors have liquidated their positions to reduce their exposure to TON.
Conversely, the analyst pointed out that this could produce a positive signal for Toncoin whales.
Over the years, retail investors’ despair and loss of hope usually herald huge buying opportunities.
It opens larger players to a favorable environment for massive strategic accumulation at a discount. The Staking TVL Ratio, which measures the percentage of total TVL allocated to staking, is facing a rebound.
This suggests that the capitulation in the speculative sector has not deterred many investors from holding their long-term optimism about TON.
This group of investors would rather lock their tokens in staking than sell them in the open market. In such cases, a recovery phase may be lurking around.
What this Means for Strained TON Ecosystem
Within a few weeks, there may come a redistribution of supply, a move capable of paving the way for a future TON price increase.
TON price was trading at $4.82 at press time following a 2.14% dip within the last 24 hours.
Its market capitalization pegged at $12 billion, while the trading volume declined by 15.88% and pegged at $134.16 million.
Toncoin is experiencing some difficulties breaking, as showcased by instability around its current support level.
Over the past week, the crypto market saw more than 240,000 TON moved to exchanges.
This outlook indicates building selling pressure, corroborated by historical data where subsequent price dips accompanied similar movements.
Market observers do not see the possibility of any price recovery in the next couple of days. In addition, the number of Toncoin addresses in profits has hit record lows.
This has equally raised concerns about the future price trajectory of the Toncoin ecosystem.
Amid this, the deleveraging trend has pointed out that it can fast-track TON, hitting its bottom faster, setting the pace for accumulation and rebound.
New Rebound Catalysts to Watch Out For
Technical analysts have suggested that TON could signal the start of a new rally if it rose above $5.78. This marks a reasonable distance from where it currently is.
More optimistic analysts have predicted that the coin could hit $7.43, with long-term projections that it will tip TON to reach $17.37.
Meanwhile, the TON Foundation recently announced plans to expand in the U.S. market, supported by pro-crypto policies under President Donald Trump’s new administration.
If it succeeds with this plan, the TON may gain more exposure in the country, with prices likely to be positively impacted.
In addition, the ecosystem’s core developers also want to explore Decentralized Finance (DeFi) growth prospects this year.
This includes a mainnet update called “Accelerator,” which aims to enhance stability, efficiency, and scalability.
In the long run, these strategic moves could serve as catalysts to the next null run for the coin.
The post Toncoin Deleveraging Spotted On-Chain, Is TON Ready for Rebound? appeared first on The Coin Republic.
