- Whale accumulation is increasing in Toncoin.
- But the risk of decline remains.
Ton Coin [TON] In new research, CryptoQuant analyst Joan Wesson found a surge in whale activity on the network over the past few weeks. report.
According to Wedson, there has been a significant increase in wallet addresses holding between 100,000 and 1 million TON tokens.
Wedson argued:
“Such actions by major players are often a strong indication of the potential and perceived value of an asset. Their growing accumulation demonstrates a positive outlook and belief in TON’s continued growth and stability.”
However, the ongoing whale buying has failed to move the needle as TON’s price chart reading indicates it may be poised for a short-term pullback.
TON faces a tough road ahead
At the time of writing, the altcoin is trading at $6.43. Its value has risen by 20% in the last month, but TON may soon lose some of these gains.
Despite TON’s price rise, the Relative Strength Index (RSI) and Money Flow Index (MFI) are declining, creating a bearish divergence. At the time of writing, TON’s RSI was at 52.57 and the MFI was at 23.39.
At these values, the indicators showed that despite TON’s price increasing over the past few weeks, the underlying buying pressure may be weakening.
The divergence that forms signals to market participants that the uptrend is nearing exhaustion and a potential downturn is on the way.
Confirming a possible downtrend, the dots on TON’s Parabolic SAR indicator remained above the price.
This indicator indicates the potential trend direction and price reversal of an asset. When the dotted line is above the asset price, the market is considered to be in a downtrend. This indicates that buying pressure is weak and the asset price may fall.
Moreover, at the time of writing, TON’s MACD line (blue) is below its signal line (orange).
Is Your Portfolio Green? Check Out Toncoin [TON] Profit Calculator
This setup is considered bearish as it indicates that TON’s upward momentum is weakening and the short-term moving average (MACD line) is falling faster than the long-term moving average.
TON/USDT. Source: TradingView
Traders often interpret this as a signal to liquidate short positions and take on long ones.
