Crypto Market Update

During Wednesday’s U.S. trading session, the crypto market rebounded, with Bitcoin registering a 1% surge to regain the $96,000 level. However, this uptick is insufficient to initiate a recovery momentum in the broader market, as certain assets like Toncoin continue to struggle at major support. Nonetheless, the increasing staking participation in TON’s TVL funds hints at potential renewed bullish momentum.

Key Highlights:

• The Toncoin price correction witnessed renewed demand pressure at a long-standing support trendline.
• A long-tail rejection candle at $3 indicates renewed demand pressure during market pullback.
• The 50-day exponential moving average may continue to act as dynamic resistance against buyers.

TON Network Sees Liquidity Drop, Yet Staking Gains Momentum

In a recent tweet, crypto analyst Joaowedson highlights a declining trend in TON total value locked (TVL), currently wavering at $171.1 million. This downtrend signals a potential decline in network activity or reduced investor confidence in DeFi protocols.

Despite the overall slump in TVL, an interesting shift is emerging: staking participation is reaching record highs. The TON Staking TVL Ratio, measuring the proportion of TVL allocated to Liquid Staking and Staking Pools, has been steadily rising. This suggests that while overall liquidity in the network is declining, a greater share of locked funds is being directed toward staking.

This trend underscores a shift in investor behavior, favoring stable staking rewards over higher-risk DeFi exposure. The locked funds also reduce the available supply volume for sale, bolstering the asset’s bullish outlook.

Toncoin Price Defends Major Support Trendline

In a 5-day fall, the Toncoin price plunged from $3.8 to $3.54, projecting a loss of 8.4%. The downswing pushes the altcoin to a long-term support trendline on daily charts since June 2023.

Historically, each reversal from this support has bolstered TON’s price with renewed bullish momentum and significant recovery. On February 3, the daily chart shows long-wick rejection at this dynamic support, indicating that buyers continue to accumulate during market dips.

A potential rebound could push the asset up 28% to challenge the key resistance level of $4.6. Conversely, if sellers breach the bottom trendline, TON may enter a significant correction trend.