NOIDA (CoinChapter.com) — CATI, a token within The Open Network (TON) ecosystem, has sharply declined, reflecting a broader downturn across TON-based projects. Once seen as a promising blockchain tied to Telegram’s vast user base, TON’s ecosystem now faces increasing scrutiny as multiple tokens lose market value.

CATI’s price has dropped significantly, mirroring similar declines in the prices of TON, NOT, and other tokens in the TON ecosystem.

Beyond CATI, TON-linked tokens have struggled to maintain liquidity, with investors exiting positions amid declining confidence. Social media discussions highlight concerns over TON’s competitive position, regulatory uncertainty, and reliance on Telegram.

While TON was initially marketed as a high-speed blockchain capable of rivaling Ethereum and Solana, its ecosystem coins have failed to establish a strong foothold.

This raises a crucial question: Is the TON ecosystem dying? CATI’s downturn provides a case study, and the performance of TON ecosystem tokens suggests a deeper issue beyond simple market volatility.

CATI Struggles to Break Downtrend as Resistance Levels Hold Firm

CATI’s price continues to paint a prolonged downtrend, struggling to reclaim lost ground after months of consistent price declines. The daily chart reveals a pattern of lower highs and lower lows, indicating a weak bullish effort to recover. CATI currently trades near $0.1578.

The Catizen token’s price spiked over 8.6% to reach a daily high near $0.165 on March 10, but failed to move above EMA resistances, showing that upside momentum is weak.

The 20-day EMA (red) is acting as a dynamic resistance, preventing a sustained breakout. The 50-day EMA (purple) and the 100-day EMA (blue) at $0.2666 remain far above, reinforcing the bearish structure. CATI has struggled to break past the 0.618 Fibonacci retracement at $0.1745 since Feb. 2, 2025, a level that aligns with a previous rejection.

A decisive push above this level is necessary for a potential recovery, but given the broader bearish sentiment across TON ecosystem tokens, upside potential remains limited.

On the downside, immediate support for the Catizen token price sits at $0.136, with a stronger floor at $0.112. A break below these levels could trigger a sharper sell-off toward $0.0816, exposing CATI to further losses. Meanwhile, the Relative Strength Index (RSI) at 47.54 signals weak momentum, remaining below the neutral 50 mark.

Overall, CATI mirrors the broader TON ecosystem’s struggles, facing low buying interest, persistent selling pressure, and weak technical indicators. Without a clear bullish catalyst, the token remains vulnerable to further declines.

TON Ecosystem Faces Existential Threat as Token Prices Plunge

TON’s ecosystem is experiencing a major downturn, with multiple tokens shedding value and struggling to maintain investor interest. The recent plunge in TON, NOT, MAJOR, and Catizen highlights concerns over the network’s viability.

A primary issue facing TON-based projects is liquidity depletion. With lower trading volumes and increased volatility, smaller ecosystem tokens have become susceptible to rapid sell-offs. Negative market sentiment has further accelerated this trend, as traders react to the “TON is dead” narrative circulating on social media.

Regulatory scrutiny is another major obstacle. TON’s association with Telegram has drawn attention from regulators, particularly in regions where Telegram faces bans or legal restrictions. Past regulatory hurdles, such as Russia’s temporary ban on Telegram, have already impacted TON’s development. If authorities impose new restrictions on Telegram, TON’s adoption could suffer further.

TON ecosystem tokens, such as Catizen (CATI), Dogs (DOGS) (-9.58%) and Notcoin (NOT) (-10.2%) highlight systemic issues rather than isolated corrections, reinforcing concerns that TON’s ecosystem is struggling to sustain long-term viability.

Competition has also intensified. Ethereum, Solana, and Binance Smart Chain continue to dominate decentralized finance (DeFi) and Web3 applications, leaving TON struggling to attract developers. While Telegram integration was once considered TON’s key advantage, it has not been enough to drive sustainable ecosystem growth.

At this stage, TON’s survival depends on its ability to regain investor confidence. While its ecosystem is not entirely dead, the current market conditions suggest a critical period ahead. TON could face an irreversible decline if trading volumes continue to shrink and regulatory pressure mounts.