Due to investor pessimism, the price of tonnecoin (TON) is slowly declining and may go lower than expected.

After the price falls below $5 and reaches a two-month low, the possible drawdown will essentially end.

The price of TONcoin is expected to decline in the upcoming days due to the sale of holdings by TON holders. The substantial earnings seen over the past few days serve as evidence of this.

The network discovered that this past week, when Toncoin's price reached an ATH, the profit loss indicator reached an all-time high.

High realised profits have historically signalled possible investor selling. This is a result of asset holders trying to protect the benefits they have realised by selling their holdings.

TON holders will also probably stick with this behavior and choose to sell their assets.

The Price Daily Active Addresses (DAA) Divergence indicator also suggests a move in this direction.

This divergence occurs when the price of a cryptocurrency and its daily active addresses move in opposite directions, indicating a potential disparity between market valuation and network usage.

Given that the price over the past few days has been positive, but participation has been actively declining, a sell signal is being noted.

The indicator hints at the potential decline and suggests that investors offload their holdings before they lose their gains.

By the looks of it, this is the path that TON holders will choose, leading to Toncoin witnessing further losses.

TON Price Prediction: Prepare for More Downside

Toncoin’s price, at the time of writing, is trading at $6.2, and considering the aforementioned conditions, the altcoin will likely fall to test the support of $5.7.

Losing this level would bring TON down to $4.7, marking a 25% drawdown for the investors.

On the other hand, if the $5.7 support is unbroken, Toncon’s price would bounce off it to reclaim $6.5 as support.

Doing so would invalidate the bearish thesis and provide the altcoin the necessary boost to attempt a breach of $7.0 to mark a new ATH.