Toncoin (TON) price hits ATL for 7 days as selling demand increases

The price of Toncoin (TON), the cryptocurrency associated with the popular messaging app Telegram, has maintained a downward trend over the past week.

Trading at $6.85 at the time of writing, the altcoin is currently at its lowest level of the week, having fallen nearly 10% in the past seven days.

Also Read: Reduced buying pressure affects Toncoin (TON) price

Toncoin continues to see increased selling pressure

TON price has decreased by 3.19% in the past 24 hours, while its volume has increased by 6% during the same period. This creates a negative divergence, implying that the price may continue to decline in the short term. A price drop accompanied by a boom in volume is usually a bad signal. This shows that many investors are selling assets, causing prices to fall.

The ongoing decline in the value of TON over the week has led many futures traders to take short positions. This can be seen from the predominantly negative funding rate of Altcoins since the beginning of July. At the time of writing, the funding rate of TON on cryptocurrency exchanges is -0.023% .

Perpetual Futures Contract use a funding rate to keep the contract price in line with the price of the underlying asset. When an asset's funding rate is negative, this indicates that many traders are taking short positions. This shows that more traders predict the price of the asset will fall compared to those who buy it, hoping to sell at a higher price.

TON Price Prediction : Get ready for the next price drop

TON's continuous price decline over the past days has pushed its price below the 20-day EMA, which tracks its Medium price over the past 20 trading days. When the price of an asset falls below its 20-day EMA, this is often a sign of a potential bearish trend or short-term weakness. This suggests that the asset's recent momentum is declining and a downtrend may be starting or continuing. If this downtrend continues, TON could drop to a monthly low of $6.35.

However, if the market trend turns from bearish to bullish and demand for Altcoins skyrockets, the price of TON could rise to $7.09 USD, negating the bearish thesis above.

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