Toncoin, also known as TON, seemed to be on the path to recovery, but those hopes were quickly dashed as whales began selling off their holdings. The token lost a significant 32% of its value in just five days, and the selling pressure shows no signs of easing.
Just a week prior, Toncoin was looking bullish as it surpassed the $3.95 resistance level and showed signs of potential recovery towards $4.8. However, a surge in whale activity in early April led to a sharp decline in the token’s value. Daily transactions spiked, indicating a potential sell-off, and TON has since dropped by 26.6% in just eight days.
The spent output profit ratio (SOPR) is a key metric that tracks whether Toncoin is being sold at a profit or a loss. Towards the end of March, the SOPR climbed above 1, signaling a potential recovery. However, this ascent was short-lived as recent data indicates that coins are being sold at a loss, adding to the bearish sentiment surrounding TON.
The HODLer net position change metric, which measures the monthly position change of long-term holders, also paints a grim picture for Toncoin. Long-term holders have been selling off their positions, indicating a transition from accumulation to distribution. This aligns with the recent whale activity and the overall weakness in TON’s market performance.
The bearish market structure break on 27 March, coupled with a significant 32% drop in just five days, has shifted the outlook for Toncoin to bearish. The $3.5 support zone has not been able to halt the selling pressure, and the Chaikin Money Flow (CMF) indicator is at -0.14, suggesting high selling pressure on the token.
In conclusion, Toncoin’s recent price movements and market indicators point towards a bearish scenario for the token. The surge in whale activity, coupled with the decline in key metrics like the SOPR and HODLer net position change, indicate that sellers are gaining strength in the market. The bearish trend is further confirmed by the significant drop in value and the failure of key support levels to hold. As of now, the outlook for Toncoin remains bleak, and investors should proceed with caution when considering their positions in TON.
