Telegram-linked Toncoin (TON) has shed almost 10% of its value over the past week and continues showing signs of market weakness. Its downward trend has pushed its price toward the lower line of its horizontal channel, forming a crucial support floor since March.

The token’s technical setup hints at the possibility of another double-digit decline soon if the support level fails to hold. This analysis delves into what TON holders need to know.

Toncoin Traders Look the Other Way

Toncoin’s funding rate has remained predominantly negative recently, signaling traders’ lack of confidence in a near-term price rebound. As of this writing, this stands at -0.0068%. 

The funding rate refers to the periodic fee paid to ensure that an asset’s contract price stays close to its spot price. Put simply, it represents the cost of holding a long or short position over a specific period.

A negative funding rate means more traders are shorting the asset than going long. This can put downward pressure on the price as these traders are incentivized to sell to reduce their exposure.

Read more: What Are Telegram Bot Coins?

TON’s falling price, combined with its negative funding rate, can create a self-reinforcing cycle where the falling price leads to more shorting, pushing the value down further.

Moreover, an assessment of buying and selling pressures in the TON market reveals the balance of power in favor of the bears. Readings from the token’s Directional Movement Index (DMI), which measures strength, show TON’s positive directional indicator (blue) below its negative directional indicator (red). 

When set up this way, the asset is witnessing more downtrends than upward movements. Traders view this as a bearish signal, suggesting that sellers are stronger than buyers.

TON Price Prediction: Will History Repeat Itself?

At press time, TON trades at $5.34 and trends toward the lower line of its horizontal channel, which has formed support since March. It fell to this line in early September but failed to break below it as the bulls could defend it.

If this repeats, Toncoin’s price will reverse its course and rally toward resistance at $7.96.

Read more: What Are Telegram Mini Apps? A Guide for Crypto Beginners

However, if the support level fails to hold, the price will plummet by 17% to a monthly low of $4.43, thereby invalidating the bullish projection above.

Ethereum price extended its decline below the $2,350 level. ETH is now recovering from losses and faces a major hurdle near the $2,300 zone.

• Ethereum declined further and traded below the $2,350 zone.
• The price is trading below $2,400 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $2,400 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must clear the $2,400 and $2,420 resistance levels to start a decent increase in the near term.

Ethereum Price Eyes Recovery

Ethereum price remained in a bearish zone and extended losses below the $2,400 level. ETH traded below the $2,350 support to move further in a bearish zone like Bitcoin.

The price even spiked below the $2,320 support level. A low was formed near $2,311 and the price is now consolidating losses. There was a minor increase above the $2,350 level. The price is still below the 23.6% Fib retracement level of the downward wave from the $2,655 swing high to the $2,311 low.

Ethereum price is now trading below $2,400 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $2,400 level. There is also a key bearish trend line forming with resistance at $2,400 on the hourly chart of ETH/USD.

A clear move above the trend line resistance might send the price toward the $2,480 resistance. It is close to the 50% Fib retracement level of the downward wave from the $2,655 swing high to the $2,311 low.

An upside break above the $2,480 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,550 resistance zone in the near term. The next hurdle sits near the $2,650 level or $2,665.

Another Decline In ETH?

If Ethereum fails to clear the $2,400 resistance, it could start another decline. Initial support on the downside is near the $2,350 level. The first major support sits near the $2,300 zone.

A clear move below the $2,300 support might push the price toward $2,220. Any more losses might send the price toward the $2,120 support level in the near term. The next key support sits at $2,050.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,300

Major Resistance Level – $2,400

BlackRock’s US Head of Thematics and Active ETFs, Jay Jacobs, said there is plenty of room for Bitcoin adoption. Jay still estimates a market of Brazilian Real 30 trillion ( ~ $5.4 trillion) in the coming years.

The executive attended the Digital Assets Conference in Brazil on Thursday. Mercado Bitcoin promoted the event in partnership with CME Group, Deribit, and Fireblock.

BlackRock is the largest fund manager on the planet and one of the first to have authorization and issue Bitcoin ETFs in the US.

Why do Investors Demand Bitcoin?

Jacobs said the fund manager began looking at Bitcoin after growing demand from clients looking for different assets in portfolios.

“They (investors) want something other than stocks and bonds. If you look at the last couple of years, there has been this growing correlation between stocks and bonds. It has been very difficult to achieve diversification, particularly in an environment of higher rates. And then people have actually tried to scour the opportunity to get alternatives. Maybe this is going to private markets,” Jacobs explained.

Read more: Who Owns the Most Bitcoin in 2024?

In addition, another demand that drove BTC adoption at BlackRock was sophisticated investors who wanted a more liquid portfolio to diversify investments.

That said, BlackRock now manages nearly 370,000 BTC, emerging as one of the largest Bitcoin holders. It has already surpassed MicroStrategy’s Bitcoin holding and now only lags behind Satoshi Nakamoto and crypto exchange Binance.

According to the latest data from SoSoValue, BlackRock’s iShare Bitcoin Trust’s (IBIT) Bitcoin stash is worth $22.33 billion.

When asked about the BTC rally, Jacobs said he could not answer. Nonetheless, he believes that diversifying investments with the most valuable cryptocurrency on the market is an assertive strategy.

“It is difficult to paint a picture for each portfolio. What we have found is that it really is more important to look at certain types of investors who can withstand volatility, who can withstand the falls, who have a long-term view,” Jacobs said.

Moreover, Jacobs indicated that BlackRock is also focused on Bitcoin education.

“We want to make it accessible and we want to help people understand Bitcoin first and foremost,” Jacobs stated.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

For Jacobs, Bitcoin is a monetary alternative, while Ethereum is more of a bet on blockchain adoption. The executive said that one of the trends that are changing the world today is geopolitical fragmentation. This is currently changing supply chains.

“We also see the emergence of AI for more technology growth, more technology adoption and digitalization. We see demographic changes around the world. We see aging populations in some countries, others very young in emerging markets. I think this could be another favorable wind for digital assets. Markets where digital assets may be most relevant also have the majority of Millennials and Gen Z who will be the most digital native,” Jacobs concluded.