Toncoin (TON) has corrected more than 15 percent from its multi-month high of $2.90, reached on May 7. The token is trading in the $2.35 range as of May 12, as traders take profit following a rapid rally fueled by fundamental network changes.
The recent price action follows news that Telegram has replaced the TON Foundation as the network's largest validator, according to on-chain data. "The speed of the move saw nearly $29 million in short positions wiped out in two days when TON reached the $2.90 zenith last week," CoinGlass data shows.
The sharp run-up to the $2.90 peak was followed by a reversal after the price failed to hold the 161.8 percent Fibonacci extension level at $2.46. Technical indicators show the Relative Strength Index (RSI) is retreating from overbought territory on higher timeframes. A Fibonacci retracement of the recent impulse move suggests a likely support zone at $2.01, the 50 percent level. Should that fail to hold, a deeper correction toward the "golden pocket" between $1.50 and $1.80 is possible.
The correction's depth will likely depend on the broader cryptocurrency market, particularly the performance of Bitcoin (BTC). While Toncoin's market structure remains bullish, a bearish turn in Bitcoin could extend TON's pullback. Despite the correction, the network demonstrated resilience by absorbing a $103 million token unlock without a significant price collapse, indicating a solid base of demand.
This article is for informational purposes only and does not constitute investment advice.
