Toncoin (TON) investors are reaping the rewards of their investments. The quantity of coins being held at a profit has soared to a weekly peak after previously dipping to a seven-month low.
This increase in profitability follows a week after Telegram CEO Pavel Durov spoke out for the first time regarding his arrest in France.
Toncoin Supply in Profit Skyrockets
After Pavel Durov’s public denunciation of his arrest on September 5, market sentiment toward Toncoin has turned optimistic. The value of this Telegram-associated asset has risen by 15% in the last week, defying the broader market decline.
As Toncoin’s value increases, the percentage of its total supply generating profit has also climbed. At the time of writing, it stands at a seven-day high of 53%.
As per data from Santiment, Toncoin’s profit-holding supply hit a seven-month low on September 8. However, following Durov’s comments, trading activity surged, bringing the number of TON coins held at a profit to 6.13 million. An uptick in an asset’s profit-holding supply signifies that a large portion of its circulating supply is now valued above its original acquisition price.
This increase in profit has prompted a strategy shift among TON’s short-term holders. Insights from IntoTheBlock illustrate that many addresses that acquired the coin in the past month are now holding onto it, choosing not to sell.
Read more: 6 Best Toncoin (TON) Wallets in 2024
This development is a bullish indicator because short-term holders, often labeled as “paper hands,” generally sell their holdings at the first hint of disruption. However, this group of TON holders appears committed to riding the wave of the ongoing price increase.
TON Price Prediction: Coin Seeks More Gains
Technical analysis indicates that TON is well-positioned to continue its upward trajectory. The Moving Average Convergence/Divergence (MACD) indicator, which monitors trend direction, transitions, and potential reversal points, signals an increasing demand for the cryptocurrency. At the current moment, TON’s MACD line (blue) is positioned above the signal line (orange) and is approaching the zero line.
When an asset’s MACD line rises above the signal line, it indicates that short-term momentum is stronger than long-term momentum. A crossing above the zero line further validates the upward trend, suggesting that a continuing rally is likely. Should TON sustain this upward movement, it could target resistance at $6.8.
Read more: Which Are the Best Altcoins To Invest in September 2024?
Nevertheless, a surge in profit-taking activities could undermine this optimistic outlook. If selling pressure intensifies, it may drive Toncoin’s price down to $4.46.
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