DOGS airdrop helps Toncoin activity, yet TON’s price drops

TON

As a seasoned crypto investor with battle scars from the 2017 bull run and the 2020 DeFi summer, I’ve learned to tread cautiously amidst the memecoin mania that has swept across the market. The DOGS airdrop on Toncoin [TON] certainly stirred up excitement and network activity, but it seems to have awakened the bears rather than driving them away.

The memecoin mania is nowhere from stopping with the launch of multiple new cryptos, one of the latest being DOGS.

The memecoin saw significant popularity due to the announcement of its airdrop on Toncoin [TON], leading to an increase in network activity. However, it remains unclear if this alone can drive away the bearish sentiment.

Bears are here

For those new to this, DOGS refers to a meme-based cryptocurrency created within a mini-application on the Telegram platform. This app enables its users to acquire DOGS tokens.

1. The launch caused Toncoin’s operations to falter, with its blockchain experiencing downtime due to excessive traffic from DOGS. However, shortly following the launch, there was a significant drop in Toncoin’s value.

As reported by CoinMarketCap, the value of DOGS has decreased by more than 33% since its initial release. Currently, it is being exchanged for approximately $0.001105 per coin, with a total market cap exceeding half a billion dollars ($570 million).

The launch caused Toncoin’s operations to be disrupted, as its blockchain experienced downtime due to an excessive amount of traffic from DOGS.

Last week, as reported on Twitter by IntoTheBlock, the TON blockchain handled approximately 46 million transactions, largely fueled by the buzz surrounding the DOGS airdrop.

However, the massive surge in activity didn’t have a positive impact on TON’s price action.

Over the past week, the value of this token has decreased by more than 7%. Currently, TON is being exchanged for approximately $5.20 each, and its total market value exceeds $13.19 billion. This places it among the top ten cryptocurrencies in terms of market capitalization.

Will DOGS and TON turn bullish?

In simpler terms, AMBCrypto analyzed the activity data on Dogecoin (DOGS) and The Open Network (TON) to determine if increased interest in these cryptocurrencies might lead to optimistic trends in the crypto market.

Initially looking at DOGS, its sentiment score has become more positive, suggesting a potential increase in value. Furthermore, both the trading volume and its price have decreased, indicating a possible change in direction or trend reversal.

DOGS airdrop helps Toncoin activity, yet TON’s price drops – Why?

Taking a glance at the memecoin’s 4-hour chart brought attention to some positive signs. Specifically, the Chaikin Money Flow (CMF) and the Relative Strength Index (RSI) both showed increases, suggesting an upward trend in price.

But the Money Flow Index (MFI) remained bearish as it moved southwards.

DOGS airdrop helps Toncoin activity, yet TON’s price drops – Why?

Subsequently, AMBCrypto examined the status of TON. By scrutinizing data from Santiment, we discovered that investors were offloading TON. An increase in its exchange supply suggests a potential decrease in value may be imminent.

Another bearish metric was the MVRV ratio, which also declined. Nonetheless, Toncoin whales were confident in the token as the supply held by top addresses increased.

As a researcher, I’ve noticed that while dogs continue to wag their tails, TON‘s technical indicators are painting a different picture for me. For example, the Chaikin Money Flow (CMF) has been moving in a downward direction. Similarly, the Moving Average Financials Indicator (MFI) is mirroring this trend, suggesting a potential further decline in its price in the near future.

2024-09-03 02:15

Bears are here

Will DOGS and TON turn bullish?

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