Toncoin sheds 11% in 24 hours - Why TON traders should sell sooner, not later

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Toncoin sheds 11% in 24 hours – Why TON traders should sell sooner, not later

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Toncoin [TON] has fallen another 11.15% in the past 24 hours of trading. A Bitcoin [BTC] correction of 3.35% in the same period forced most altcoins lower and resulted in $85 billion being erased from the crypto market cap.

In the derivatives market, $942 million worth of long and short positions faced liquidation in the past 24 hours. An overwhelming majority were longs.

After rallying to $2.9 earlier this month, Toncoin was dropping quickly down the price charts. In a recent report, AMBCrypto reported why a retracement to $1.5 appeared likely.

This situation was getting closer to reality, but the hopeful expectations previously held for TON might have to be revised.

Reading the TON situation alongside BTCsSource: TON/USDT on TradingView

After the drop to $1.12 in February, TON rallied hard in May to break previous swing highs and reach $2.9. This meant the 1-day structure was firmly bullish. It also meant that a retracement down to $1.5 would be part of a healthy pullback.

So long as TON stays above $1.12, its bullish swing structure remains in place.

This does not give swing traders an actionable plan in the coming days. Moreover, the risk-to-reward is not as lucrative given the BTCs structural flip.

Source: BTC/USDT on TradingView

The 4-hour BTC structure has just turned bearish after the session closed below the $74,937 swing low. The higher timeframe trend for BTC was already bearish. The losses in the past two weeks mean that the crypto market is primed for its next bearish leg.

TON traders need to stay bearishSource: TON/USDT on TradingView

Traders must remember that the current 4-hour structure was bearish. The drop to $1.72 on Friday, the 22nd of May, was used to plot a set of Fibonacci retracement levels.

It must be noted that further downside without a bounce is still possible. At the same time, a bounce toward $1.9-$2.0 would allow sellers to enter the market.

The long-term support expected at $1.5 might unravel quickly if Bitcoin continues its descent, as it structurally looks set to do. Toncoin traders will have to shift toward a short-term bearish bias and look to sell the bounce.