Toncoin slides to $1.5 as longs get liquidated and bulls lose grip

Toncoin [TON] is on the verge of erasing all gains made after a strong rally in May. The altcoin dropped to a monthly low of $1.4 before staging a modest rebound. As of this writing, the altcoin trades at $1.5, down 2.1%, adding to its 10.2% weekly decline. With the slip, TON has fallen below both its short- and long-term moving averages — a clear signal that the downtrend still has the upper hand.

As TON continued to drop, leveraged longs were hit with massive liquidations. On June 5, $7.66 million worth of longs were liquidated, while the pressure eased to $1 million on June 6. Such a steep flush suggested traders had been overly bullish, and the price drop forced them out of their positions. The result: more selling pressure as the crowd rushed for the exits.

With fear spiking, traders hurried to close out. The altcoin's Open Interest dropped 10%, hitting a monthly low of $318 million. When speculative activity dries up, the market tends to weaken in the short term — though in the long run, the cooldown can offer some much-needed stability.

Reduced speculation isn't the only thing working against TON. Holders have started cashing out, with some traders locking in gains as prices slipped. According to CoinGlass, the altcoin's Spot Netflow flipped positive after a week in the red. As of this writing, Spot Netflow sat at $1.32 million, a sharp reversal from -$4.59 million the day prior. The shift indicates aggressive selling from active spot traders — historically, that kind of pressure has foreshadowed more weakness ahead.

The recent selling spree has visibly weakened Toncoin's bullish structure. Bears haven't fully overrun the market, but bulls are losing their grip. The Directional Movement Index (DMI) confirms it: +DI dropped to 24 while -DI rose to 21, and ADX climbed to 25 — a textbook setup for strengthening downside momentum. When +DI declines while ADX and -DI rise, downside risk tends to grow, and the market has been weak for a while.

If the selling pressure persists, TON could lose the $1.5 support and slide toward $1.3. To invalidate the bearish outlook, TON needs to hold $1.5 and reclaim $2. If it fails, the decline is likely to continue — unless sentiment recovers across the broader market.