Toncoin Drops 2.65% to $2.83 Amid Bearish Trend

Toncoin (TON) has experienced a significant decline, with its price dropping below $2.85, marking a 2.65% decrease for the day. This downward movement follows a brief recovery attempt that failed to surpass the resistance level near $2.90. The price of TON is currently trading around $2.83, indicating continued pressure on the cryptocurrency.

A prominent analyst on X, known as CryptoChiefs, highlighted the significance of the bottom of the large green engulfing candle from June 22. This area aligns with a crucial support zone ranging from $2.68 to $2.73. The engulfing candle, which initially acted as a support level, is now being closely monitored by traders for potential price reactions.

Since mid-June, TON has shown signs of weakness despite a decent recovery. The price has been oscillating within a range of $2.73 to $2.90, with buyers repeatedly attempting to push the price above $2.90 but facing rejection. The latest red daily candle suggests that sellers remain in control, and unless TON can close above the $2.91–$2.93 range, the overall trend is likely to remain bearish.

The broader trend analysis reveals that TON is in a downtrend, characterized by lower highs and lower lows. Any short-term bounce is expected to be temporary unless the price can sustainably break above the last rejection zone around $2.91. The move up after June 22 initially appeared promising but ultimately failed to hold, reinforcing the bearish outlook.

The support zone between $2.68 and $2.73 is now a critical area to watch. If TON drops into this zone, traders will be closely observing whether buyers step in to support the price. A strong reaction in this zone could lead to another short-term bounce, but a breakdown below it could see the price fall to the next support levels around $2.55 or even $2.42.

Social sentiment also points to the significance of the bottom of the engulfing candle, as many traders are tracking this level. If TON can hold above this support, it might attract bullish setups. However, given the overall downtrend, the price action in this support zone will be crucial in determining the next direction for TON. Traders are advised to keep a close eye on this level over the coming days.