During Wednesday’s U.S. trading session, the crypto market rebounded, with Bitcoin registering a 1% surge to regain the $96,000 level. As this uptick is insufficient to initiate a recovery momentum in the broader market, certain assets like Toncoin continue to struggle at major support. However, the increasing staking participation in TON’s TVL funds hints at the potential for renewed bullish momentum.
Key Highligths:
- The Toncoin price correction witnessed renewed demand pressure at a long-coming support trendline.
- A long-tail rejection candle at $3 hints at renewed demand pressure during market pullback
- The 50-day exponential moving average could continue to act as a dynamic resistance against buyers.
TON Network Sees Liquidity Drop, Yet Staking Gains Momentum
In a recent tweet, crypto analyst Joaowedson highlights a declining trend in TON total value locked (TVL) to waver at $171.1 Million currently. This downtrend signals a possible decline in network activity or reduced investor confidence in DeFi protocols. However, despite the overall slump in TVL, an interesting shift is emerging—staking participation is reaching record highs.
A key indicator, the TON Staking TVL Ratio, which measures the proportion of TVL allocated to Liquid Staking and Staking Pools relative to the total TVL, has been steadily rising. This suggests that while overall liquidity in the network is declining, a greater share of locked funds is being directed toward staking.
This trend accentuates a shift in investors’ behaviors as they favor more stable staking rewards over higher-risk DeFi exposure. These locked funds also reduce the supply volume available to sell, bolstering the asset’s bullish outlook.
Toncoin Price Defends Major Support Trendline
In a 5-day fall, the Toncoin price plunged from the $3.8 level to the $3.54 current trading price, projecting a loss of 8.4%. The downswing pushes the altcoin to a long-coming support trendline of daily charts intact since June 2023.
Historically, each reversal from this support has bolstered TON’s price with renewed bullish momentum and significant recovery. On February 3rd, the daily chart shows long-wick rejection at this dynamic support, indicating the buyers continue to accumulate at the market dip.
A potential rebound could push the asset 28% up to challenge the key resistance level of $4.6.
On the contrary, the TON coin could enter a major correction trend if sellers breach the bottom trendline.
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