The price of Toncoin (TON), associated with Telegram, is currently under significant pressure, with indications that it could drop below $5 soon. Since September 28, TON has been on a steady decline, losing approximately 10% of its value.
Recent data from Santiment shows a notable increase in Toncoin's supply on exchanges, currently at 1.6 million TON tokens—up 7% over the past week. This spike often signals bearish sentiment, as more tokens moving to exchanges typically indicates that holders are preparing to sell, creating selling pressure.
In contrast, the number of TON tokens held outside exchanges has decreased, now totaling 9.93 million, reflecting profit-taking by holders. This decrease of 0.3% in the last week reinforces the narrative of increased selling activity.
Further supporting this bearish outlook, the netflow of large holders—those owning over 0.1% of TON’s circulating supply—has plunged by 143% in the past week, according to IntoTheBlock. This decline suggests that significant investors are offloading their holdings, contributing to market uncertainty. The actions of these large holders can significantly influence overall market sentiment, leading to heightened sell-offs from smaller investors.
Given the rising supply on exchanges and diminishing activity from major holders, Toncoin appears to be on a continued downward path. If the current trend of sell-offs persists, analysts predict that Toncoin's price could fall by 16%, potentially reaching a monthly low of $4.42—levels not seen since early September.
However, should market conditions improve and selling pressure lessen, Toncoin might attempt to break through the $5.90 resistance. A successful breakout could pave the way for a rally, potentially pushing the price towards $6.81.
In summary, Toncoin holders should brace for possible further declines as market dynamics shift. Vigilance and strategic planning will be essential for navigating the upcoming challenges in the TON market.
October 2024, Cryptoniteuae