Toncoin faces the risk of breakdown at a crucial support level amidst the growing wave of pessimism.

Toncoin (TON) has just temporarily halted a two-day plummet with a fall of over 10%, stabilizing around the support zone at the 50-day exponential moving average (EMA) at $3.18. However, the short term outlook still leans towards a negative direction as market sentiment becomes more cautious. In the past 24 hours, the open interest (OI) of TON has decreased by 10%, reflecting an increasing hesitation from traders. Technically, the signals are also not very promising, as the MACD indicator continues to emit sell signals.

Open contract falls 10% when investors lose interest

Toncoin is making investors uneasy as it has become one of the worst-performing cryptocurrencies in the last 24 hours. The wave of capital withdrawal from the derivatives market indicates a growing sense of skepticism, despite the funding commitment of up to 558 million USD from Verb Technology – a company that has just officially listed on NASDAQ.

According to data from CoinGlass, the total value of futures contracts and options (OI) of Toncoin has plummeted by 10%, from 421.08 million USD on Tuesday to 379.65 million USD – clearly reflecting the decline in investor confidence.

Open contract of Toncoin | Source: Coinglass## Risk of deep fall when MACD signals sell

Toncoin (TON) has just experienced two consecutive plummet sessions, losing 10% of its value as it slipped from the 200-day exponential moving average (EMA) down to near the 50-day EMA. As of now, TON still remains strong above this dynamic support level, after falling to a daily low of $3.14 during Wednesday's trading session.

However, the technical signals are leaning towards the possibility of continued adjustment. Specifically, the MACD indicator has crossed below the signal line on Tuesday, sending a clear sell signal. At the same time, the relative strength index (RSI) has also retreated to the level of 46 – below the neutral threshold, reflecting a significant weakening of buying momentum.

Daily chart of TON/USDT | Source: TradingViewIn the event that the closing price falls below the 50-day EMA at $3.18, the downtrend may continue towards the nearest support zone around $2.96 – an area that was previously tested on July 15.

On the contrary, if Toncoin rebounds from the 50-day EMA, this coin may recover to the important resistance zone at the 200-day EMA around the $3.54 mark.

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