Markets
Toncoin (TON) whales continue to accumulate: bullish signal
The price of Toncoin (TON), the cryptocurrency linked to the popular messaging app Telegram, has been consolidating in a range since June 15. It encountered resistance at $8.16 and found support at $6.16. At the time of writing, the altcoin is trading at $7.39.
As the market awaits the token’s breakout in one direction or the other, Whales are betting on a rally.
Toncoin whales are buying more tokens
Data from IntoTheBlock shows that the significant net flow from Toncoin holders has increased by over 31,000% in the last seven days.
Large holders are addresses that hold more than 0.1% of the circulating supply of an asset. The net flow of large holders of an asset measures the difference between the coins that these large holders buy (inflows) and the amount that they sell (outflows) over a given period.
When the metric spikes, it is a bullish signal, as it suggests that whale addresses are accumulating the asset. Conversely, a decline in the net flow from large holders of an asset signifies an increase in outflows from whale addresses. This is a bearish signal, suggesting potential selling pressure and a risk of price declines.
Learn more: 6 Best Toncoin (TON) Wallets in 2024
Net flow of large Toncoin holders. Source: In the block
However, not everyone shares the whales’ optimism. In fact, a significant portion of the TON derivatives market is betting on its price continuing to decline. This can be inferred from the negative funding rate that has been following the altcoin since June 15. At the time of writing, TON’s funding rate is -0.02%.
Financing rates are a mechanism used in perpetuity future contracts to ensure that the contract price remains close to the spot price.
When an asset’s funding rate is negative, more traders hold short positions. This means that more traders expect the asset’s price to fall than those who buy it in hopes of selling it at a higher price.
TON Price Prediction: Sellers keep control
Although the altcoin is trading in a range, the bearish sentiment surrounding it remains strong. Its Directional Movement Index (DMI) readings confirm this as its negative directional indicator (-DI) is above the positive directional indicator (+DI) at press time.
The DMI index measures the strength and direction of an asset’s price trend. When configured this way, it means that downward price movements in the asset are currently stronger than upward movements.
Traders interpret this as a sign that sellers are in control and that the price could continue to fall in the short term. If the price of TON falls, it trading hands below $7 at $6.93.
Learn more: 11 Cryptos to Add to Your Portfolio Before Altcoin Season
However, if the bulls initiate an uptrend, the token price could see a surge up to $8.32.
Disclaimer
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