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Toncoin, the Telegram-based cryptocurrency, has seen its recent price surge falter, raising concerns about its future trajectory. After reaching a monthly high of $7.12 on August 14, TON has retreated to its current trading price of $6.76. This decline is fueled by a growing lack of conviction among token holders, as evidenced by on-chain metrics.
One key indicator, the Mean Dollar Invested Age (MDIA), measures the average holding time of all TON holders. A rising MDIA suggests long-term holding, often associated with a bullish outlook. However, TON’s 90-day MDIA has recently declined, indicating that some holders are becoming less patient and more willing to sell.
Furthermore, IntoTheBlock’s Coins Holding Time metric shows a significant decrease in the amount of time holders have resisted transacting or selling their TON. This suggests that selling pressure is increasing, which could further drive down the price.
Also Read: Toncoin Rides Binance Wave – Up 170% In 2024, Can It Break $7 Resistance?
Based on these on-chain indicators and historical price patterns, TON’s price could be poised for a 10% decline. The current trading level of $6.75 aligns with a supply zone that has previously triggered significant price drops. If TON fails to attract increased demand, it could fall to $6.19. However, a surge in demand could potentially push the price back up to the upper-level resistance at $7.26.
Toncoin’s recent price increase has been short-lived, as holders are losing conviction and selling pressure is mounting. The on-chain metrics suggest that a further decline is possible, although the extent of the drop will depend on future market conditions and demand. Investors should closely monitor these indicators and be prepared for potential volatility.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
