Toncoin (TON) Signals Bullish Reversal After Crashing to 1-Month Low

Toncoin (TON) is exhibiting signs of a bullish reversal after hitting its lowest level in over a month.

On July 5, TON’s price declined by approximately 10.75%, reaching to an intraday low of $6.36, a level last seen on June 3. This decline is part of a broader correction trend, with TON plunging over 22% from its local peak of $8.17, established just three days prior.

Toncoin Rejects Close Below Key Ascending Trendline Support

Toncoin price retreated after reaching its intraday low of $6.36, jumping by around 5.50%. In doing so, the cryptocurrency formed a long wick to the downside, which traditional analysts view as a sign of bullish rejection.

For instance, a similar candlestick formation on May 1—coupled with ascending trendline support—preceded a 63% TON price boom afterward. This fractal is being repeated in July, with the same ascending trendline offering support to TON in addition to its bullish candlestick pattern.

Furthermore, at the time of the May 1 bounce, TON’s daily relative strength index (RSI) was around 39, just nine points above the oversold threshold of 30. The RSI is treading around the same level as of July 4, boosting TON’s rebound probabilities in the coming days.

Should it happen, Toncoin’s next upside target appears to be around its prevailing ascending trending resistance, which also marked the top for the rebound move in May. In other words, TON’s price will likely rally toward $8.25 in the coming days, up by around 22.65% from the current price levels.

Why is the Toncoin Price Down?

Toncoin’s price dip mirrors similar downside moves elsewhere in the crypto market, including top coins like Bitcoin (BTC), Ethereum (ETH), XRP (XRP), and others.

Traders are moving their assets out of the crypto market due to two core reasons: the German government’s liquidation of hundreds of millions worth of seized Bitcoin tokens and the Mt. Gox trustee’s reimbursement of over 140,000 BTC worth about $8 billion to its creditors for the first time since the exchange’s hack in 2014.

Bitcoin’s downturn typically drives the crypto market in the same direction, so the Toncoin price has dropped likewise. That is despite the TON Blockchain’s strong network growth in recent weeks.

For instance, the total-value-locked (TVL) across the TON ecosystem has grown by around 1,350% year-to-date, according to data resource Defi Llama.

Fundamentally, Toncoin adoption has boomed with gaming projects like Notcoin (NOT) and Hamster Kombat on its blockchain, which together have amassed nearly 350 million users since their launch.

Most recently, Notcoin partnered with analytics firm Helika to establish an incubator for the next wave of Telegram games. The launch of the Telegram Gaming Accelerator focuses on developing mini-apps within Telegram and on TON. Moreover, Hamster Kombat has the potential for token listings and airdrops on the TON blockchain.

In addition, GoMining launched TON-native GOMINING tokens with integrated cashback campaigns, and USDT was introduced as a payment option for social security contributions in the Philippines, marking the increasing adoption and utility of TON in various sectors beyond gaming.