Toncoin Tsunami: $1 Billion Whale Activity Shakes Up Price – What’s Next?
May 19 2024 - 9:00AM
NEWSBTC
Despite a recent surge in activity from large investors, often
referred to as “whales,” the price of Toncoin (TON) appears headed
for choppier waters. This comes as analysts raise concerns about
the cryptocurrency’s weakening technical indicators and its
potential breach of a key support level. Related Reading: Crypto
Alert: VeChain Bull Run Imminent, Expert Predicts 500% Rally Whales
Make A Splash, But Can They Save The Day? In a recent report, Joao
Wedson, a crypto analyst at CryptoQuant, observed a significant
spike in whale activity on the Toncoin network. Transactions
exceeding 100,000 TON (roughly equivalent to $645,000 at current
prices) surpassed a staggering $1 billion in the past few weeks.
This indicates that major holders have been actively moving large
amounts of TON, but the purpose behind these movements remains
unclear. While the whales are certainly making a splash, Wedson
said it’s not necessarily translating to smooth sailing for TON’s
price. He pointed out that while large transactions dominate the
network’s volume (over 50%), their impact on the price seems
negligible. Conversely, smaller transactions, although constituting
the majority of overall activity, contribute a much smaller share
of the total volume. Technical Indicators Flash Red Toncoin’s price
has been exhibiting signs of weakness despite the influx of whale
activity. Notably, TON recently dipped below its 20-day Exponential
Moving Average (EMA), a technical indicator used to gauge
short-term trends. This suggests that the average price of TON over
the past 20 days has been on a downward slope, signifying a shift
towards selling pressure. Adding to the bearish sentiment is the
imminent crossover of the Moving Average Convergence Divergence
(MACD) indicator. The MACD line appears poised to fall below its
signal line, which traditionally indicates a loss of upward
momentum and a potential price decline. These technical indicators
are flashing red flags for TON. If the price breaches the lower
line of its ascending channel, which has been acting as a support
level, a drop to $5.70 is a distinct possibility. Related Reading:
Floki Inu Frenzy: Memecoin Eyes New Highs As Open Interest Soars Is
This A Buying Opportunity Or A Sinking Ship? The current situation
surrounding Toncoin presents a conundrum for investors. The
substantial whale activity hints at potential bullish interest, but
the technical indicators paint a bleak picture. The key question
remains: are the whales accumulating or distributing? If they’re
accumulating, this could be a buying opportunity before the price
rebounds. However, if they’re selling off their holdings, it could
be a sign of a distressed ship. Featured image from
Vikks/Shutterstock, chart from TradingView
FLOKI (COIN:FLOKIUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
FLOKI (COIN:FLOKIUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024