Toncoin Whales Accumulate Tokens Anticipating an Upward Movement, But Market Sentiment Remains Bearish

Since mid-June, Toncoin (TON), the digital asset associated with Telegram, has been experiencing a phase of price consolidation, fluctuating between a resistance level of $8.16 and a support threshold at $6.16. Presently, the TON token is trading at $7.39 TON/USDT on Gate.io.

Digital asset Toncoin (TON), associated with Telegram, has been consolidating between a resistance level of $8.16 and a support threshold at $6.16 since mid-June. Currently, the TON token is trading at $7.39 TON/USDT on Gate.io.

As the market awaits a decisive breakout, an interesting trend has emerged: substantial holders, often referred to as ‘whales,’ are accumulating TON in anticipation of an upward movement.

According to recent analytics, the netflow of large holders has surged by an impressive 31,000% over the past week. In this context, large holders are defined as entities or addresses possessing over 0.1% of the asset’s circulating supply. The large holder netflow metric gauges the balance between the inflow (acquisitions) and outflow (disposals) of coins by these substantial holders over a designated period.

A sharp increase in this metric is typically interpreted as a bullish indicator, signaling that whale addresses are amassing the asset. Conversely, a decline suggests increased outflows, implying potential selling pressure and a bearish outlook.

However, a significant segment of the TON derivatives market maintains a bearish stance, as evidenced by the persistently negative funding rate since June 15. Currently, the funding rate stands at -0.02%.

Funding rates serve as a mechanism in perpetual futures contracts to align the contract price with the spot price. A negative funding rate indicates a preponderance of short positions, reflecting a market expectation of further price declines.

Despite the ongoing consolidation, bearish sentiment remains dominant. The Directional Movement Index (DMI) further corroborates this perspective, with the Negative Directional Indicator (-DI) positioned above the Positive Directional Indicator (+DI).

The DMI is a technical indicator used to assess the strength and direction of a trend. The current configuration suggests that downward price movements are prevailing over upward trends, indicating that sellers exert greater control over the market.

In this context, traders interpret these signals as an indication that the price of TON may continue to decline in the short term. Should this bearish trend persist, the next price level to watch would be $6.93. Conversely, if bullish forces manage to gain momentum, the token’s price could potentially rise to $8.32, aligning with the price forecast of TON.

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