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Toncoin Faces Weekly Selloffs: Here’s Why
Toncoin (TON) has seen outflows in the last 24 hours after recording huge gains in recent months. The Open Network’s native utility token is down 3.28% today and more than 5% this week. The asset’s weekly sell-off comes amid positive flows in the cryptocurrency market.
The crypto market recorded positive sentiments after the CPI Report which shows the decline in inflation in the USA. As a result, the price of Bitcoin (BTC) soared above $66,000, marking a sharp rise from previous levels. This increase was also seen in altcoins, with several assets seeing double-digit gains.
Reasons for bearish tone
Toncoin is known for outperforming major coins this year due to partnerships and developments on the network. However, recent corrections have raised bearish concerns. Firstly, the asset recorded falling daily volumes. At the time of this publication, TONNE is trading at $6,462 with daily trading volumes of $280 million, a decline of 34.7%.
This led to bullish sentiment, placing weekly flows in the red zone. The recent decline of gaming token Notcoin is also linked to the fall of Toncoin. NOT fell 50% after posting sharp gains in the market. The asset’s recent surge was due to its airdrop marking the launch with a frenzy in the crypto spaces.
Notcoin received major announcements from Binance, OKX, and Bybit, attracting more flows within hours, generating $294 million in volumes. The decline began when most users started selling their assets, leading to a drop in price. Crypto analysts have drawn lines with the pattern of most airdrops as users look to make quick profits.
Toncoin annual increase
This year, Toncoin was hailed as an asset that surpassed Bitcoin despite the enormous growth recorded in the latter following the approval of the spot ETF by the Securities and Exchange Commission (SEC). TON has surpassed BTC with year-to-date gains of over 160% as BTC registered corrections after reaching an all-time high.
Recently, TON Whales has increased market activity with over $1 billion in assets pushing its price.
Read too: Here’s Why XRP Price Could Rise 3,000% to Gain $18 Soon
David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and keeps an eye on the latest news. Keeping up to date with trends, David has reported across multiple niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from financial markets, David rides his bike and horses.