Toncoin (TON) has been attracting the attention of big money movers, with a recent surge in whale activity on the network. However, despite this apparent investor confidence, TON’s price chart hints at a potential short-term decline.
According to a report by CryptoQuant analyst Joao Wedson, there’s been a significant increase in wallet addresses holding substantial amounts of TON, specifically between 100,000 and 1 million tokens. Wedson interprets this as a bullish sign, suggesting “a strong indicator of the asset’s potential and perceived value.” He believes the growing accumulation by major players reflects a positive outlook on TON’s continued growth and stability.
However, the price action seems to be telling a different story. While TON has seen a 20% value increase in the past month, technical indicators on its price chart suggest a potential downward correction.
The Relative Strength Index (RSI) and Money Flow Index (MFI) are both declining despite the price growth, creating a bearish divergence. These indicators measure buying pressure, and their current readings suggest it might be weakening even as the price climbs. This divergence can be interpreted as a sign that the uptrend might be losing steam, with a potential price drop on the horizon.
Further strengthening the case for a downtrend are the Parabolic SAR (SAR) and Moving Average Convergence Divergence (MACD) indicators. The SAR’s dotted lines are positioned above the price, which traditionally indicates a bearish market with weak buying pressure. The MACD setup also paints a similar picture, with the blue MACD line falling below the orange signal line. This suggests a weakening of TON’s upward momentum as the shorter-term moving average falls faster than the longer-term one.
Also Read:Toncoin: Soaring TVL and User Adoption, Can It Overcome Resistance and Double Top Pattern?
While whale activity often indicates bullish sentiment, technical analysis suggests TON might face a short-term price correction despite the recent accumulation. Investors should carefully consider both sides of the coin before making any investment decisions.
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.
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