Telegram-linked Toncoin (TON) has seen a marked increase in whale activity in recent weeks. Its large holders’ netflow has spiked, and daily large transactions involving the altcoin have also climbed, indicating heightened engagement from major investors. 

However, this surge in whale activity has done little to move the needle on Toncoin’s price, as prevailing bearish sentiment continues to hold back its momentum.

Toncoin large holders or whales have been busy over the past few weeks. The uptick in the altcoin’s large holders’ netflow signals that they have been accumulating TON tokens. In the past seven days, this has gone up by 131.63%.

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Large holders are addresses holding over 0.1% of an asset’s circulating supply. Their netflow tracks their buying and selling activity. It measures the difference between the amount of tokens they are buying and the amount they are selling.

When this metric surges, it indicates that whales are buying more coins than they are selling. This is seen as a bullish signal, as it suggests that these investors believe the price of the cryptocurrency is likely to increase.

Additionally, the daily count of large transactions involving Toncoin has skyrocketed over the past month. According to IntoTheBlock’s data, the number of daily TON transactions worth between $1 million and $10 million has increased by nearly 94% over the past 30 days. During the same period, the daily count of larger transactions worth above $10 million has risen by nearly 67%.

However, the overall sentiment surrounding TON continues to be bearish, hindering its price momentum. Its Short-term holders (STHs) have reduced their holding time, contributing to the downward pressure on the price. 

IntoTheBlock’s data show a 29% decline in their holding time in the past month. This decline indicates that TON holders who have held their tokens for less than a month are holding onto their assets for even shorter periods before selling them. 

STHs are typically considered “paper hands,” quick to sell at the first sign of trouble. Given their substantial share of an asset’s circulating supply, their rapid selling can intensify downward pressure on the price. 

This has played out in Toncoin’s case, whose price has dropped by 10% in the past month due to increased selling from its STHs. 

At the time of writing, Toncoin is trading at $5.09. With buying pressure on the decline, the altcoin could fall to its September 6 low of $4.46, marking a potential 13% drop from its current price.

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On the upside, a rise in demand could see Toncoin’s price attempting to break above the immediate resistance level at $5.26. A successful breakout here would set its sights on the next key resistance at $5.91, potentially paving the way for a rally toward its two-month high of $6.36.

The post Toncoin (TON) Whale Activity Surges While Prices Go Nowhere Fast appeared first on BeInCrypto.

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