Toncoin Price Faces Correction Amid Broader Market Downturn

The cryptocurrency market has been experiencing a correction, with Bitcoin losing ground below $100,000. As a result, the Toncoin price has also been affected, recording a 2.6% loss on January 9th to reach its current price of $5.18. With the broader market correction accelerating, the TON price could potentially extend its downfall to $4.6.

Key Highlights and Market Data

The Toncoin price market cap currently stands at $13.6 billion, with a 24-hour trading volume of $246.2 million. The daily chart shows a downsloping trendline and a $4.6 horizontal level governing the major movement in the Toncoin price. Notably, the $4.6 support is backed by a 50% Fibonacci retracement level and the 100-week Exponential Moving Average, indicating a high accumulation zone.

Rising User Adoption Rate Signals Growth for Toncoin Price

Despite the current correction, the TON blockchain is experiencing a significant increase in its New User Adoption Rate, according to data from CryptoQuant. This metric measures the percentage of new addresses performing their first transactions relative to the total number of active addresses. The rising user adoption rate suggests that TON’s ecosystem is attracting more participants daily, making the network more robust and secure.

As more users engage with the network, it paves the way for further advancement and opportunities. This development is expected to positively impact the Toncoin price by driving sustained demand pressure. Historically, an increase in user adoption has been a key driver of growth for cryptocurrencies.

Historical Data Shows Potential TON Recovery

Over the past five weeks, the Toncoin price has witnessed a significant downfall from $7.19 to $5.19, registering a loss of 27.8%. The correction trend has shown several lower high formations, indicating a sell-the-bounce sentiment among investors, generally observed in an established downtrend.

However, historical data suggests that the Toncoin price is likely to recover from the current correction. Each reversal from the $4.6 support has led to a sharp recovery of 35%-to-70% in the following weeks. The 50% Fibonacci retracement level coincides with the $4.5 level, further strengthening the defense and indicating that the broader trend is bullish.

Conclusion

While the Toncoin price is currently facing a correction, the rising user adoption rate and historical data suggest that the asset is poised for a fundamental-backed recovery. As the broader market correction accelerates, it’s essential to keep an eye on the Toncoin price and its potential to breach the $4.6 support level. With sustained demand pressure and a robust network, the Toncoin price is likely to recover and potentially reach new heights in the future.

Source: Cryptonewsz.com

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