Toncoin Price Analysis: TON Faces Pullback After Reaching ATH Amid TVL Surge - Where Is It Likely To Find Support?

Toncoin is the crypto asset recognized by its symbol TON and is currently trading at $6.93 marking a drop of 1.76% in the last 24 hours. Despite this recent pullback in the last several days the digital asset remains strong in the market with a market cap of approximately $16.8 billion and ranking it 9th. The trading volume in the last 24 hours has seen an increase of over 38% to total around $302.8 million

TON Technical Analysis

Since early May Toncoin has shown volatile trading patterns. After rallying initially from a low of $4.6 on May 1st  the price tested the then all-time high but closely missed to create a fresh one and faced rejection creating a high of $7.4 on May 13. The next several days faced a bearish tone. However the bulls regained control by filling and finding support at a fair value gap (FVG) that emerged on May 9, pushing TON to a new all-time high of $7.86 on June 5. Since this recent all-time high the price has shown signs of bearish momentum

The technical indicators provide a mixed signal. The Daily Relative Strength Index (RSI) stands at 53 close to neutral mark indicating that there could be further room for price retracement before it reaches the oversold territory. The Moving Average Convergence Divergence (MACD) remains bullish for now with the MACD line still above the signal line. However a potential bearish crossover looms as the histogram decreases suggesting a build up of bearish momentum

In the short term, the $6.6 horizontal support level is critical. This level is fully visible on the 4-hour chart and could serve as a strong support in the next few days. Should TON break below this level then the next supports might be found at lower FVGs or along the ascending trendline.

Toncoin market metrics are as mixed just as its price movements. The Total Value Locked (TVL) has surged to a new all-time high of over $478 million. This represents an increase from $163.48 million exactly two months ago on 11th April which highlights a strong inflow of investments into the network’s DeFi protocols

Investor sentiment from IntoTheBlock remains mainly positive with data indicating that 83% of TON holders are currently in profit at the existing price while only 10% are at a loss and 7% are breaking even. Also a substantial 60% of TON supply is held by large investors. While this concentration suggests strong holding confidence it also points to potential price manipulation risks.

The increasing TVL and the substantial stake by significant holders suggest that Toncoin is solidifying its position in the DeFi sector. This growing trust and investment by developers and investors indicate that despite the current price volatility the underlying fundamentals of the TON network remain strong.

Toncoin market indicators and technical analysis suggest a vibrant ecosystem with potential for future growth. The network increasing TVL and the concentration of holdings among large investors also highlight a strong market presence and investor confidence even as the technical indicators suggest potential short term bearish movement.