Toncoin (TON) has experienced a notable price increase over the past week, climbing by 8.15% to reach $5.26, marking its highest value since October 21, 2024. This recovery has sparked renewed optimism among Toncoin holders, many of whom had previously faced unrealized losses as the altcoin’s value fluctuated. With the market showing signs of a broader rebound, the increase in TON’s price has also shifted the balance of profitability for holders, potentially signaling further upside momentum in the coming days.
The surge in TON’s price has significantly impacted its profitability metrics. According to on-chain analysis, the Historical In/Out of Money (HIOM) data reveals that 22.81% of Toncoin holders are now in the green, meaning they are currently holding a profitable position. Specifically, 21.91 million TON addresses are showing a profit, reflecting a positive shift in market sentiment.
This increase in profitable holders comes as part of a broader rebound in the cryptocurrency market, which has seen the total global market capitalization rise to $2.75 trillion. As a result, more TON holders are now seeing the value of their assets increase, offering a potential spark for further investment.
The rise in Toncoin’s price has also reduced the number of holders experiencing unrealized losses. As of now, 58.88% of TON holders are still out of the money (i.e., their holdings are not currently profitable). However, the shift in sentiment towards a higher proportion of profitable addresses suggests that buyer momentum is strengthening. As the number of profitable addresses continues to rise, it could signal a decrease in the percentage of holders still in the red.
A key metric that further supports this positive trend is the Money Flow Index (MFI), which has been increasing on the daily chart. The MFI measures buying and selling pressure by examining both price movement and volume data. A higher MFI reading typically indicates stronger buying activity, suggesting that the recent recovery in Toncoin’s price is being supported by increased demand and market participation.
As the number of profitable addresses increases, the momentum in the market may shift more in favor of buyers. The rise in Toncoin holders in profit could encourage further purchases, as more investors stand to gain by holding or adding to their positions. The higher profitability could also encourage those who had been waiting for a better price to enter the market, adding to the buying pressure.
The HIOM data suggests that if this trend continues, the current 58.88% of holders who are out of the money could decrease, signaling a more balanced market with greater participation from both sides. This could set the stage for further price appreciation as demand for Toncoin continues to grow.
Given the current market conditions, Toncoin’s recent price recovery, and the increase in profitable addresses, there is a realistic chance that TON could continue its upward trajectory. A key resistance level to watch for is $6.15, where Toncoin could encounter selling pressure if the rally continues.
However, based on the growing number of profitable holders, increasing MFI, and overall positive market sentiment, Toncoin could very well reach this target, or even exceed it, should buying momentum continue to build.
As the broader crypto market continues to recover, Toncoin appears to be positioning itself as one of the altcoins benefiting from the rise in overall market capitalization. With a growing number of holders seeing profits, a continued uptrend could lead to further price gains for TON in the near future.
Toncoin’s recent price increase and the rise in profitability among holders have shifted the market sentiment in a positive direction. With a significant portion of addresses now in profit and increased buying pressure indicated by the MFI, there is potential for further price appreciation. If this momentum persists, Toncoin could be on track to test new highs, with $6.15 as a key target in the short term.
As always, cryptocurrency markets are volatile, and price movements can be unpredictable. Investors should monitor the market closely, assess their risk tolerance, and consider technical indicators as part of their decision-making process. Nonetheless, Toncoin’s recent performance suggests that a bullish outlook may be in store as it continues to recover and attract new participants.
November 2024, Cryptoniteuae