Despite a recent surge in activity from large investors, often referred to as “whales,” the price of Toncoin (TON) appears to be headed toward more choppy waters. This comes at a time when analysts are raising concerns about the weakness of the cryptocurrency’s technical indicators and the possibility of it breaching a key support level.
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Whales release water, but can they save the day?
In a recent report, João Widson, a cryptocurrency analyst at CryptoQuant, noted a Significant increase in whale activity On the Toncoin network. Transactions exceeding 100,000 tons (equivalent to roughly $645,000 at current prices) have topped a staggering $1 billion in the past few weeks. This suggests that holders of the major currencies were actively moving large amounts of tons, but the purpose behind these movements remains unclear.
While the whales certainly make a lot of noise, Wedson said that doesn't necessarily translate to smooth sailing Price per ton. He noted that while network size is dominated by large transactions (more than 50%), their impact on price appears minimal. Conversely, smaller transactions, although making up the majority of overall activity, contribute a much smaller share of the total volume.
Technical indicators flash red
Toncoin price showed signs of weakness despite an influx of whale activity. Notably, TON recently fell below the 20-day Exponential Moving Average (EMA), a technical indicator used to measure short-term trends. This indicates that the average price per ton over the past 20 days has been on a downward slope, indicating a shift towards selling pressure.
Adding to the downtrend is the impending crossover of the moving average convergence and divergence (macd) Indicator. The MACD line appears to be about to drop below its signal line, which traditionally indicates a loss of upward momentum and a potential price decline.
These technical indicators are flashing red flags for TON. If the price breaks the lower line of its ascending channel, which has been acting as a support level, a drop to $5.70 is a clear possibility.
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Is this a buying opportunity or a sinking ship?
The current situation surrounding Toncoin presents a dilemma for investors. High whale activity indicates potential bullish interest, but technical indicators paint a bleak picture.
The main question remains: Are the whales accumulating or distributing? If they are accumulating, this could be a buying opportunity before the price rebounds. However, if they are selling their property, it could be a sign of a distressed ship.
Featured image from Vikks/Shutterstock, chart from TradingView
