Toncoin Price Decline: Whales Active, but Sentiment Remains Bearish

The Toncoin (TON), associated with Telegram, has experienced a significant increase in whale activity lately. The netflow for its major holders has surged, and the frequency of large transactions involving the altcoin has also risen, suggesting increased interest from prominent investors.

Despite this rise in whale involvement, Toncoin’s price has remained relatively stagnant, predominantly due to ongoing bearish sentiment that continues to dampen its progress.

Toncoin Whales Accumulate More

Over the last few weeks, Toncoin’s large holders, often referred to as whales, have been actively accumulating tokens. The increase in the netflow of large holders indicates that these investors have been boosting their holdings, with a notable rise of 131.63% in the past week alone.

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Large holders are defined as addresses possessing more than 0.1% of an asset’s circulating supply. Their netflow measures the buying and selling activity, determining the balance between the number of tokens bought and sold.

A surge in this metric suggests that whales are purchasing more coins than they are disposing of. This is generally viewed as a bullish indicator, implying that these investors anticipate a price increase for the cryptocurrency.

Moreover, the count of daily large transactions associated with Toncoin has experienced a dramatic increase over the past month. Data from IntoTheBlock reveals that daily TON transactions valued between $1 million and $10 million surged by almost 94% in the last 30 days. Concurrently, transactions exceeding $10 million have risen by roughly 67% during the same timeframe.

Toncoin Short-Term Holders Contribute to Downtrend

Nonetheless, the prevailing sentiment surrounding TON remains negative, stifling its price movement. Short-term holders (STHs) have been reducing their holding times, which adds to the selling pressure on the asset.

Data from IntoTheBlock shows that holding times for STHs have decreased by 29% over the past month. This trend suggests that those who have held their TON tokens for less than a month are now parting with their assets even more quickly than before.

STHs are often categorized as having “paper hands,” readily selling at the first indication of market trouble. Their substantial portion of the circulating supply means that their quick sell-offs can further amplify downward price pressure.

This scenario has unfolded for Toncoin, with its price experiencing a 10% decline over the past month owing largely to increased selling by its STHs.

TON Price Outlook: Monthly Low Approaching

Currently, Toncoin is priced at $5.09. With a decline in buying interest, the altcoin may drop to its September 6 low of $4.46, representing a potential 13% decrease from its current value.

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If demand increases, Toncoin’s price could attempt to break through the immediate resistance level at $5.26. Successfully surpassing this level could aim for the next major resistance at $5.91, potentially initiating a rally towards its two-month high of $6.36.