Toncoin [TON] has dropped to a monthly low of $1.5, marking a significant decline from its May rally gains. According to reports from AMBCrypto, the altcoin traded at $1.5, down 2.1%, adding to its 10.2% weekly decline. The price movement has pushed TON below both its short-term and long-term moving averages, indicating the strength of the current downtrend. The cryptocurrency is now on the verge of erasing all gains made during its strong rally in May.
The price decline has triggered significant liquidations in leveraged positions, as reported by AMBCrypto. $7.66 million worth of long positions were liquidated on June 5th, while pressure declined to $1 million on June 6th. Such massive liquidations suggest traders had been overly bullish and the price drop forced them out of the market, creating additional selling pressure. The altcoin's Open Interest fell 10% to $318 million, hitting a monthly low as traders hurriedly closed positions amid fear in the market.
According to CoinGlass data reported by AMBCrypto, Spot Netflow turned positive at $1.32 million, reversing from -$4.59 million the previous day. This shift indicates that some traders are choosing to lock in gains as prices continue to decline. The positive netflow suggests that most active traders on the Spot are aggressively selling, which often precedes further market weakness. This reduced speculative activity typically weakens markets in the short term but could provide stability in the long run.
The recent selling pressure has significantly weakened Toncoin's bullish structure, as analyzed by AMBCrypto. The Directional Movement Index (DMI) shows +DI at 24 while negative index rose to 21, with ADX jumping to 25, suggesting strengthening downside momentum. When +DI declines while ADX and -DI rise, downside risk becomes significantly greater. If TON fails to hold $1.5 support and reclaim $2, it could drop to $1.3 according to the technical analysis. To invalidate the bearish outlook, TON must defend the $1.5 level and reclaim $2, as failure to do so will likely cause the decline to continue.
