Toncoin has recently retraced most of its gains from the May rally, dipping intraday to $1.40 before slightly recovering to around $1.50. Over the past week, TON has declined over 10% and broken below both short-term and long-term moving averages, indicating continued downward pressure.
Long liquidation amplifies the downward trend
As prices continued to decline, leveraged long positions faced concentrated liquidations. Data cited in the article shows that TON long liquidations reached $7.66 million on June 5 and dropped to approximately $1 million on June 6. Previously bullish positions were forced to exit during the downturn, further intensifying selling pressure.
Meanwhile, market participants have begun actively reducing risk. TON’s open interest has declined by 10% to a monthly low of $318 million, typically indicating that short-term speculative capital is exiting and market activity is weakening accordingly.
- On June 5, long positions totaling approximately $7.66 million were liquidated.
- On June 6, long positions totaling approximately $1 million were liquidated.
- Open interest decreased to $318 million.
Spot funding flow turns positive.
In addition to the cooling of the derivatives market, spot selling pressure has also increased. According to CoinGlass data cited in the report, TON's spot net inflow turned positive after a week of negative flows, reaching approximately $1.32 million, compared to a net outflow of $4.59 million the previous day.
This change typically indicates more tokens flowing into trading platforms, as some holders begin to realize their profits. If spot selling pressure continues to increase, it often exerts further downward pressure on the price.
Around $1.50 becomes a short-term focal point.
Based on the technical indicators cited, the bullish momentum for Toncoin has clearly weakened. The directional indicators show that the positive indicator has declined while the negative indicator has risen, and the ADX has increased to 25, indicating that the downward trend is strengthening.
The article notes that if the current selling pressure continues, TON may break below $1.50 and further decline toward $1.30. To alleviate this downward structure, the price must first stabilize near $1.50 and reclaim levels above $2.
Overall, TON is currently facing pressure from both derivatives deleveraging and spot selling. Whether the short-term price stabilizes depends on whether market sentiment improves and whether buying interest can absorb the sell-off around $1.50.