Toncoin hits weekly low despite inking a $20M partnership with three GameFi firms

2024-7-24 23:46

Toncoin (TON), is the native cryptocurrency of Telegram’s decentralized layer-1 blockchain, The Open Network (TON), has fallen to a weekly low of $6.85, reflecting a significant decline of nearly 10% over the past week.

This downturn has been fueled by increased selling pressure and a rising demand for short positions among traders overshadowing the positive developments

Indicators point to a further Toncoin price drop

In the past 24 hours, Toncoin’s price has decreased by 3.19%, even as trading volume surged by 6%. This rising volume amidst declining prices creates a negative divergence, hinting at potential further devaluation in the short term.

Analysts suggest that if the current downtrend continues, the price could drop further to $6.35. The negative sentiment is corroborated by the funding rate for Toncoin, which stands below -0.03%.

Source: CoinGlass

The negative funding rate indicates that more traders are taking short positions, anticipating further declines in the asset’s price.

This trend is consistent with a broader bearish outlook for the cryptocurrency, which has fallen below its 20-day moving average, a common signal of potential short-term weakness or an ongoing bearish trend.

Source: TradingView TON, Animoca Brands, Moca Network, and MOCA Foundation partnership

It is worth noting that Toncoin is experiencing a bear trend irrespective of a $20 million partnership between The Open Network (TON) blockchain, Animoca Brands, Moca Network, and the MOCA Foundation.

The partnership is aimed at driving mass adoption of Web3 and GameFi through several initiatives, including the creation of a $20 million MOCA coin and Toncoin reserve.

The reserve is designed to incentivize developer and user engagement within the Open Network ecosystem.

Key initiatives under this partnership include The Open League, hackathons, and accelerator programs aimed at fostering cross-functional development.

A crucial element of this collaboration is the introduction of the “TON Society ID,” a decentralized identity credential that will enable users to leverage governance power on the blockchain. This new system aims to support the goal of reaching 500 million TON users by 2028.

Additionally, the partnership will see the development of a reputation scoring system and the integration of Moca ID and the Realm Network SDK with Telegram’s vast user base.

The combined efforts of these entities are expected to bring new tools, users, and funding to each ecosystem, potentially revitalizing interest and activity in the TON blockchain.

However, while the recent partnership highlights the growing ambition for Web3 and blockchain technologies, the immediate market conditions suggest a need for vigilance regarding further price movements.

If the market sentiment shifts and demand increases, Toncoin could see a recovery, potentially rallying to $7.09. But if the market sentiment remains as it is, the short-term outlook for Toncoin remains cautious.

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