Toncoin Whales Plummet the Coin’s Price to $6.57

News sources report that between July 21 and 28, Toncoin whales sold 1.4 million TON tokens, suggesting a potential downward trend for the cryptocurrency. The increased profit-taking, evident from the on-chain volume, indicates that Toncoin’s uptrend may slow in the short term. Both the Awesome Oscillator (AO) and Moving Average Convergence Divergence (MACD) for Toncoin are reportedly negative, signaling weak market momentum. The Telegram-based project Toncoin (TON) has seen its market dominance despite allegedly surpassing Bitcoin (BTC) for much of the year. Following a two-week decline where the price dropped by 15%, TON is reportedly trading at $6.79 at press time. This analysis highlights that the token’s challenges are far from over. 

Toncoin Whales Dump the Tokens, Raising Market Concerns

A significant factor behind Toncoin’s potential decline is reportedly the behavior of whales. It has been noted that Toncoin whales, entities or individuals holding large amounts of a cryptocurrency, have the power to significantly impact prices through their actions.

Netflow, the difference between large inflows and outflows, indicates accumulation or selling by whales. A positive ratio means whales are accumulating more, while a negative ratio implies they are selling. In Toncoin’s case, the negative ratio shows that whales sold 1.4 million TON tokens between July 21 and 28. It is even said that continued selling could erase some of TON’s recent gains.

Increased Profit-Taking and Market Implications

The price bounce of TON reportedly led to a significant spike in the ratio of daily on-chain transactions in profit to loss, reaching its highest level reported since July 19. This metric indicates whether token holders are realizing profits or bearing losses. A negative ratio means more realized losses, while a positive ratio suggests profits. As discussed above, Toncoin whales offloading led to the token experiencing the latter. 

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For Toncoin, the price increase resulted in higher profit-taking. However, increased profit-taking usually precedes a price decline, especially if selling pressure intensifies. If the ratio of on-chain transactions in profits to losses continues to rise, Toncoin’s uptrend could be halted.

Toncoin Price Prediction: Weak Indicators Suggest Further Decline

Experts state that the daily chart analysis shows that Toncoin’s price increase is not supported by strong indicators. The Awesome Oscillator (AO), which measures market momentum and detects early price changes, is currently negative. A positive AO indicates increasing momentum, while a negative reading, as seen with TON, suggests decreasing momentum.

Similarly, the Moving Average Convergence Divergence (MACD), another oscillator with a bearish bias, is currently in the red region. This reinforces the likelihood of a downtrend. The MACD indicator, which tracks the relationship between two moving averages of a security’s price, is a widely used tool for identifying potential reversals in market trends. A negative MACD reading, as observed with Toncoin, indicates that the short-term moving average is below the long-term moving average, suggesting bearish momentum.

If the negative momentum, influenced by Toncoin whales, goes on, TON’s price may fall to $6.57. This level of support is crucial; if breached, it could trigger further selling. With increased selling pressure, the price could drop further to $6.02, a significant decline from current levels. Such a drop would represent a substantial loss for Toncoin whales and could lead to a loss of confidence in the market. Market participants should closely monitor these indicators, as they provide valuable insights into potential future price movements and help in making informed trading decisions. Follow The BIT Journal for more updates on the Toncoin prices.