Toncoin (TON) has faced challenges in breaking through the critical resistance level of $5.37 throughout the month. Despite several attempts, the cryptocurrency has struggled to maintain momentum above this key price point. However, signs are emerging that suggest Toncoin may soon experience significant volatility, with market participants anticipating a potential price surge.
Recent data highlights a noteworthy shift in Toncoin’s supply dynamics. The balance of power is moving from short-term holders (STH) to mid-term holders (MTH). Over the last two weeks, the percentage of supply controlled by short-term holders has decreased from 50% to 35%, while mid-term holders have increased their share by 15%, now commanding 61% of all TON.
This shift is significant as short-term holders, who typically hold assets for less than a month, are more likely to sell quickly, contributing to price fluctuations. In contrast, mid-term holders tend to retain their investments for a longer period (one to twelve months), which can lend more stability to the price. The growing dominance of mid-term holders is viewed positively, suggesting a potential stabilization in Toncoin's price.
Toncoin’s technical indicators are also pointing toward a possible breakout. The Bollinger Bands, a tool used to gauge volatility, are currently forming a squeeze. This indicates that the price is consolidating and preparing for increased volatility. Historically, a Bollinger Bands squeeze is often followed by significant price movements, and given the current low trading volume, any major shift in market dynamics could amplify this effect.
If the broader cryptocurrency market maintains a bullish trend, the impending volatility could propel Toncoin’s price higher.
As of now, Toncoin is trading at $5.19, just below the critical resistance level of $5.37. Successfully breaching this barrier is essential for a potential rally toward $6.00. Investors are closely monitoring this key level, as surpassing it could signal the beginning of a bullish run.
Market indicators suggest that a breach of $5.37 is possible, particularly as volatility increases and selling pressure remains low. However, breaking the resistance is only part of the equation; Toncoin must also hold $5.37 as a support level to sustain its momentum and avoid a quick reversal.
Should Toncoin fail to maintain its position above $5.37, a decline to $4.86 may occur. In this scenario, a failed breakout would likely lead to a retracement, dampening the current bullish sentiment.
Toncoin is at a crucial juncture as it approaches the $5.37 resistance level. With a shift in investor sentiment toward mid-term holding and technical indicators suggesting imminent volatility, the coming days could be pivotal for Toncoin's price trajectory. Investors should stay vigilant, watching closely to see if Toncoin can secure its breakout or if it will retreat to lower levels.
October 2024, Cryptoniteuae