The price of Toncoin (TON), a cryptocurrency linked to the popular messaging app Telegram, has been consolidating in a range since June 15. It encountered resistance at $8.16 and found support at $6.16. At the time of writing, the altcoin is trading at $7.39.
While the market is waiting for the token to break out in either direction, whales are betting on a rally.
Toncoin Whales Buy More Tokens
IntoTheBlock data shows that net flow from large Toncoin holders has grown by more than 31,000% over the past seven days.
Large holders refer to addresses that hold more than 0.1% of the asset’s circulating supply. The net flow of large holders of an asset measures the difference between the coins these large holders buy (inflows) and the amount they sell (outflows) over a given period.
When the metric rises sharply, it is a bullish signal as it suggests that whale addresses are accumulating the asset. Conversely, a drop in net flow from large holders of the asset means increasing outflows from whale addresses. This is a bearish signal, suggesting potential selling pressure and risk of a price decline.
Read more: 6 Best Toncoin (TON) Wallets in 2024
However, not everyone shares the whales’ optimism. In fact, a significant portion of the TON derivatives market is betting that its price will continue to fall. This can be gleaned from the negative funding rate that has followed the altcoin since June 15. At the time of writing, TON’s funding rate is -0.02%.
Funding rates are a mechanism used in perpetual futures contracts to ensure that the contract price remains close to the spot price.
When the financing rate of an asset is negative, more traders take short positions. This means that more traders expect the price of the asset to fall than those who buy it with the expectation of selling it at a higher price.
TON Price Forecast: Sellers retain control
Although the altcoin is trading in a range, the bearish sentiment around it is still significant. Its Directional Movement Index (DMI) readings confirm this, as its negative directional indicator (-DI) is above its positive directional indicator (+DI) at press time.
The DMI measures the strength and direction of an asset’s price trend. When it is set this way, it means that the asset’s downward price movements are currently stronger than its upward movements.
Traders interpret this as a sign that sellers are in control and the price may continue to fall in the short term. If the TON price falls, it will fall below $7 at $6.93.
Read more: 11 Cryptocurrencies Worth Adding to Your Portfolio Ahead of Altcoin Season
However, if the bulls initiate an uptrend, the token price may rise to $8.32.
