The TONIC price has been in a strong bearish trend in the past few weeks. The sell-off continued last week as investors realised that they could lose their holdings within a few days. Tectonic is trading at $0.000000250, which is significantly lower than the year-to-date high of $0.00000182. Its total market cap has dropped to about $17.9 million.
Tectonic is a fast-growing Decentralized Finance (DeFi) platform that has a close resemblance with Anchor Protocol. It is an ecosystem that lets people supply capital, which other people then borrow. According to its platform, people have supplied over $611 million to the network, while the borrowed amount is about $277 million. Most of the supplied coins in the network are Cronos (CRO), followed by USD Coin, Tether, and Dai.
The biggest challenge facing Tectonic and other DeFi platforms is the recent meltdown of Terra LUNA and UST. As a result, investors are worried that their DeFi holdings can disappear if there are challenges in the stablecoin industry. This situation happened last week as many DeFi platforms in the Terra ecosystem like Anchor Protocol and Astroport burst after the value of Terra USD declined sharply.
We see that the TONIC price has been in a strong bearish trend in the past few months on the daily chart. The sell-off continued last week after Terra imploded. The coin managed to move below the important support level at $0.000000413, which was the lowest level in January. It has also dropped below the short and long-term moving averages. At the same time, oscillators like the Relative Strength Index (RSI) and the Stochastic Oscillator continued dropping.
The coin will likely keep falling as the cryptocurrency sell-off continues. The next key support level to watch will be at $0.00000020. The stop-loss for this trend will be at $0.000000050.
This post was last modified on May 16, 2022, 10:18 BST 10:18