Toncoin (TON) holders are currently witnessing a notable upswing in their investments, as recent data reveals a significant increase in the coin’s profitability. Following a period of decline, the supply of Toncoin held at a profit has reached a new weekly high, marking a dramatic turnaround.
A New Peak in Profitability
According to Santiment’s data, the supply of Toncoin in profit hit a seven-month low on September 8. However, this bearish trend was reversed following a significant event: Telegram CEO Pavel Durov’s public statement regarding his recent arrest in France. This announcement spurred a surge in trading activity, propelling the number of Toncoin coins held at a profit to 6.13 million.
A spike in an asset’s supply in profit indicates that a substantial portion of its circulating supply is now valued higher than when it was originally acquired. This uptick suggests a strong rebound in investor sentiment and asset value.
Shift in Short-Term Holding Strategy
The rise in Toncoin’s profitability has led to a notable shift in strategy among its short-term holders. Data from IntoTheBlock indicates that many addresses which purchased the coin in the past month are now choosing to hold onto their assets rather than selling. This is a positive indicator, as short-term holders—often referred to as "paper hands"—typically sell off their assets at the first sign of trouble. The fact that this group is retaining their holdings suggests confidence in the ongoing price rally.
Technical Analysis and Price Prediction
Toncoin’s technical indicators further support the bullish outlook. The Moving Average Convergence/Divergence (MACD) indicator, which helps in tracking trend direction, shifts, and potential price reversals, shows a favorable setup for the altcoin. Currently, the MACD line (blue) is positioned above the signal line (orange) and is approaching the zero line, signaling increasing demand for Toncoin.
Since Pavel Durov’s public condemnation of his arrest on September 5, market sentiment surrounding Toncoin has become notably more positive. This shift has contributed to a 15% surge in Toncoin’s value over the past week, defying the general market downtrend.
Profitability and Resistance Levels
As Toncoin’s price continues to climb, the percentage of its total supply held in profit has surged to a seven-day high of 53%. This rise in profitability reinforces the asset’s positive momentum. When the MACD line crosses above the signal line, it indicates that short-term momentum is stronger than long-term momentum. A cross above the zero line further supports the uptrend, suggesting a continued rally.
Looking ahead, if Toncoin maintains its current upward trajectory, it is expected to target resistance at $6.8. The technical setup, combined with the recent positive market sentiment, positions Toncoin for potential further gains.
Conclusion
Toncoin’s recent performance highlights a significant turnaround in its profitability and market sentiment. The surge in the percentage of Toncoin held in profit, coupled with positive technical indicators and a shift in short-term holding strategies, suggests that the altcoin is well-positioned for continued gains. As market conditions remain favorable, Toncoin investors may see further positive movement in the near future.
September 2024, Cryptoniteuae