Here’s Why Toncoin (TON) Could Drop 17% in the Short-Term
Telegram-linked Toncoin (TON) has lost nearly 10% of its value over the past week and continues to show signs of market weakness. Its downtrend has pushed its price towards the lower line of its horizontal channel, forming a crucial support floor since March.
The coin’s technical setup hints at another double-digit drop soon if the support level fails to hold. This analysis dives into what TON holders need to know.
Toncoin Traders Looking the Other Way
Toncoin’s funding rate has been largely negative lately, indicating a lack of confidence among traders in a near-term price rebound. At the time of writing, it stands at -0.0068%.
The funding rate refers to the periodic fees paid to ensure that the underlying asset’s contract price remains close to its spot price. Simply put, it represents the cost of holding a long or short position over a specified period.
A negative funding rate means that more traders are short selling than buying. This can put downward pressure on the price as these traders are incentivized to sell to reduce their exposure.