Toncoin recently gave back most of its gains from the May rally, falling as low as $1.40 before recovering slightly to around $1.50. Over the past week, TON has fallen by more than 10%, breaking below both short-term and long-term moving averages, indicating that downward pressure continues.

Long liquidation amplifies the decline

As prices continued to fall, leveraged long positions faced concentrated liquidation. Data cited in the article shows that TON long positions were liquidated totaling $7.66 million on June 5th, decreasing to approximately $1 million on June 6th. Previously favored long positions were forced to exit during the decline, further exacerbating selling pressure.

At the same time, market participants began to proactively mitigate risk. TON open interest fell 10% to a monthly low of $318 million. This typically indicates the exit of short-term speculative funds, leading to a corresponding weakening of market activity.

• On June 5th, long positions were liquidated for approximately $7.66 million.
• On June 6, approximately $1 million in long positions were liquidated.
• Open interest fell to $318 million.

Spot cash flow turns from negative to positive

In addition to the cooling of the derivatives market, spot selling is also increasing. The report, citing CoinGlass data, states that net inflows into TON spot trading turned positive after a week of negative figures, currently standing at approximately $1.32 million, compared to a net outflow of $4.59 million the previous day.

This change typically means more tokens are flowing into trading platforms, and some holders are starting to cash in their profits. If spot selling pressure continues to increase, it will often put further downward pressure on prices.

The area around $1.50 has become the short-term focus.

Based on the technical indicators cited in the article, the bullish momentum for Toncoin has clearly weakened. Directional indicators show a decline in positive indicators and an increase in negative indicators, with the ADX rising to 25, reflecting a strengthening downward trend.

The article mentions that if the current selling pressure continues, TON may fall below $1.50 and further test the $1.30 area. To alleviate this downward trend, the price needs to stabilize around $1.50 and return above $2.00.

Overall, TON is currently facing pressure from both derivatives deleveraging and spot selling. Whether its short-term trend can stabilize depends on whether market sentiment can improve and whether there is sufficient buying support around $1.50.