This week, many of the top 20 altcoins posted double-digit growth, but some, including $TON
, were the exception. This is due to several key #Toncoin metrics
Let's break down how onchain indicators are affecting TON's current weak performance and what this could mean for Toncoin's future momentum.
Whales still don't believe in TON
One of the main drivers of Toncoin's price sag below $5 is Whale's net equity flows. This metric reflects the activity of addresses that hold between 0.1% and 1% of the total circulating token volume. A positive value of the metric shows that large investors have accumulated more tokens than they have sold. A negative value, on the other hand, says that sales exceeded purchases.
According to IntoTheBlock, net flow in the Whale segment has declined 117% over the past seven days. This means that Whale sold tokens, putting pressure on the price.
If this trend continues, TON's price could deepen the decline. In addition, other Toncoin indicators point to a decline in confidence among short-term hodlers.
For example, the “Addresses by Time of Hold” metric shows that many investors who bought TON in the past 30 days chose to sell tokens rather than hold them. Such sales also put pressure on token value.
If Toncoin fails to attract new short-term users, the prospects of a recovery to $7 may not materialize.
The rally to $7 is postponed for now
On the daily chart, the asset continues to trade within a descending triangle. This contrasts with other altcoins that have recently made bullish breakouts.
A descending triangle is a bearish technical pattern formed by the descending upper and horizontal lower trend lines. It indicates increasing selling pressure. If the price fails to break the upper boundary of the pattern, it may continue to fall.
As you can see below, Toncoin attempted such a breakout. However, the rebound from $4.95 showed that the effort was futile and brought the token back to $4.84. If the bears continue to neutralize the bulls' attempts, the price risks falling to $4.45.
However, if the metrics described above return to the bullish zone, the trend could change. In this case, TON will get a chance to grow up to $7.27.