Toncoin (TON), the cryptocurrency linked to the popular messaging app Telegram, is facing headwinds as large investors, known as whales, offload millions of tokens. The recent selling spree has cast a shadow over the token’s performance, raising concerns about a potential price decline.
Despite outperforming Bitcoin for much of the year, TON has experienced a turbulent period in recent weeks. A 15% price drop preceded a modest rebound, but underlying indicators suggest the token may not be out of the woods yet.
The crux of the issue lies in the behavior of whales. These high-net-worth investors hold substantial amounts of TON, and their actions can significantly impact the market. Data from IntoTheBlock reveals a dramatic 97.05% decrease in TON Large Holders’ Netflow over the past seven days. This stark contrast to previous inflows indicates a shift in sentiment among these key players.
Whales sold off approximately 1.4 million TON tokens between July 21 and 28. If this trend persists, it could exert downward pressure on the price, erasing recent gains. Furthermore, the ratio of daily on-chain transactions in profit to loss has surged, suggesting increased profit-taking. While this is a natural consequence of a price increase, it also raises the specter of a potential sell-off as investors cash in their profits.
Technical indicators also paint a cautious picture. The Awesome Oscillator (AO) and Moving Average Convergence Divergence (MACD) are both negative, signaling weak market momentum. This reinforces the possibility of a downtrend, with potential price targets of $6.57 or even $6.02 if selling pressure intensifies.
However, a shift in whale behavior could alter the outlook. If these large investors begin accumulating TON rather than selling, it could ignite a price rebound, potentially pushing the token towards $6.90 or higher.
The coming weeks will be crucial for TON. If whales continue to offload their holdings and market sentiment deteriorates, the token could face a challenging period. Conversely, a reversal in whale behavior and a resurgence of investor confidence could propel TON to higher levels.
