According to the news sources, between July 21 and 28, Toncoin whales sold 1.4 million TON tokens, indicating a potential downturn for the altcoin. This augmented level of activity in added profits was backed by strong on-chain volume. This event reportedly hints at a sluggish upward movement impending in the near future. Both the Awesome Oscillator (AO) and Moving Average Convergence Divergence (MACD) for Toncoin are negative, which again shows a scrawny market situation after the Toncoin whale activity.
Toncoin Faces Market Challenges Despite Outperforming Bitcoin
Toncoin is a Telegram-backed project and it has been on the optimistic end of crypto news for a long time. On good days, Toncoin (TON) has dominated the market where it left Bitcoin (BTC) behind for a better part of the year as well. After a downward trajectory for two weeks, the TON price plunged by 15%. Currently, at the time of writing, TON is reportedly trading at $6.79, post the Toncoin whale event. This analysis underscores that this is just the tip of the iceberg for TON as a much harder period awaits the Toncoin whales.
Market Concerns Validated as Toncoin Whales Jump Ship
Behavior of Toncoin whales is being reported as one of the most impactful reasons for the TON downturn. Toncoin whales or individuals saving up on massive amounts of a coin are usually the ones who secure the power to move prices through their actions. According to IntoTheBlock, TON Large Holders’ Netflow has been cut down by an appalling 97.05% in the last seven days. This massive drop gives an opposing view to the large inflows observed a few weeks ago.
Netflow is defined as the difference between large inflows and outflows. It shows hoarding or selling by whales. When the netflow is positive, it indicates that Toncoin whales are saving the tokens in large amounts. Contrarily, a negative number shows that they are selling it. Specifically, in this event, the negative ratio implies that Toncoin whales sold 1.4 million TON tokens between July 21 and 28. Experts speculate that further selling could do over some of TON’s recent gains.
Toncoin Whales: More Profits and Market Implications
The price bounce of TON sparked enhanced activity in the daily on-chain transactions in profit to loss. According to the news sources, this made it approach its highest level since July 19. This metric depicts whether token holders are making profits or losses. As mentioned earlier, a negative ratio shows more losses, while a positive ratio suggests profits realized.
Fortunately for Toncoin, the price hike led to higher profit-taking. However, augmented profit-taking usually works as a precursor for a price cut, particularly if selling pressure becomes more intense. If the ratio of on-chain transactions in profits to losses continues to rise, Toncoin’s uptrend could hit a stop.
Forecasting Toncoin Whales Activity: Is a Further Decline Impending?
Sources watching the market closely suggest that the daily chart analysis reflects that Toncoin’s price increase is not backed by strong indicators. The Awesome Oscillator (AO), which measures market momentum and senses early price changes, is reportedly negative at the moment. A positive AO indicates an upward trend, while a negative reading, such as TON’s, shows a decreasing inclination.
Similarly, the Moving Average Convergence Divergence (MACD), another oscillator with a bearish bias, is currently in the red region which is an indication of a downhill movement. The MACD indicator, which tracks the relationship between two moving averages of a security’s price, is another common tool for identifying potential reversals in market trends. A negative MACD reading, as seen with Toncoin, reflects that the short-term moving average is below the long-term moving average, indicating bearish momentum.
If the negative momentum carries ahead, TON’s price may drop to $6.57. This can even trigger selling. With increased selling pressure, the price could drop further to $6.02, a huge drop from current levels. Follow Turkish NY Radio for more updates on the Toncoin prices.
