- The price of Toncoin (TON) has been fluctuating between $8.16 and $6.16, where resistance and support are located, respectively.
- Large holders have nevertheless seen a gain in netflow of more than 31,000% in the last week.
- The derivatives market appears to be in a gloomy sentiment, as indicated by the negative funding rate, with many traders anticipating a decline in price.
Since June 15, the price of Toncoin (TON), a cryptocurrency connected to the well-known messaging service Telegram, has stabilized within a range. It encountered opposition at $8.16 and discovered support at $6.16. The altcoin is now trading at $7.39.
The whales are betting on a rally while the market watches for the token to breakout in either way.
Token Purchases by Toncoin Whales
Toncoin’s large holder netflow has increased by more than 31,000% during the last seven days, according to data from IntoTheBlock.
Addresses holding more than 0.1% of an asset’s circulating supply are referred to as large holders. The difference between the quantity of coins these large holders purchase (inflows) and the amount they sell (outflows) over a certain time period is measured by an asset’s large holder netflow.
A increase in the statistic indicates that whale addresses are amassing the asset, which is a bullish indicator. On the other hand, a decline in the large holder netflow of an asset indicates an increase in withdrawals from whale addresses. It is a negative indicator, indicating a possibility of price decrease and possible selling pressure.
But not everyone is as optimistic as the whales. In fact, a sizable chunk of the futures market for TON is placing bets on the company’s price decline. The fact that the altcoin has had a negative financing rate since June 15 indicates this. TON’s financing rate as of this writing is -0.02%.
Perpetual futures contracts use funding rates as a means of guaranteeing that the contract price remains near the spot price.
A negative financing rate on an asset encourages more traders to keep short bets. This indicates that a greater proportion of traders anticipate a decline in the asset’s price than those who purchase it with the hope of selling it for a profit.
TON Price Forecast: Sellers Continue to Have Power
Even though the altcoin trades in a range, there is still a lot of pessimistic feeling around it. Since its Negative Directional Indicator (-DI) is currently resting above the Positive Directional Indicator (+DI) at the time of press, readings from its Directional Movement Index (DMI) validate this.
The DMI calculates the price trend strength and direction of an asset. This configuration indicates that the asset’s price movements are currently more strongly inclining downward than upward.
This is seen by traders as an indication that sellers are in charge and that the price may drop further in the near future. If TON’s price drops, it will trade at $6.93, below $7.
Nonetheless, the token’s price can increase to $8.32 if the bulls start an advance.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
