With a mix of bullish and bearish signals from both technical indicators and on-chain metrics, traders are evaluating whether this is a sign of a larger downturn or if the asset might soon recover.
Is network growth strong enough?
Toncoin’s net network growth stood out at the time of reporting, with an increase of 9.03%. This positive signal indicates a steady influx of new users into the network, reflecting growing interest. However, without significant buying pressure, this growth may not be sufficient to reverse the downward trend.
Meanwhile, the concentration level has increased by 0.60%, indicating that whales are accumulating. Large holders often act as stabilizers during periods of volatility, showing confidence in the asset’s long-term potential.
The “In the Money” ratio is neutral at 0.19%, indicating that many holders are currently breaking even. This suggests a balanced market where traders are hesitant to make decisive moves until a clearer trend emerges.
A concerning signal is the 0.37% decrease in large transactions, indicating reduced participation from major investors and hesitation in making significant moves in the current market.
Technical Indicators: RSI and Bollinger Bands
According to technical analysis, the Relative Strength Index (RSI) is currently at 41.82, close to the oversold region. This could signal a short-term recovery for Toncoin, although a sustainable reversal is not yet confirmed.
The Bollinger Bands (BB) indicate that Toncoin is in a consolidation phase, with the price near the lower band at $5.43. This lower band may act as a support level, with potential for increased volatility.
The upper limit is $5.60, and breaking this level could signal a new upward momentum.
Spike in Trading Volume and Its Impact on TON
Despite the price drop, trading volume has increased by 7.92%, reaching $319.58 million, according to data from Coinglass. This increase in volume suggests heightened market activity, which could lead to significant price volatility in the near future.
Toncoin’s Outlook
Toncoin’s indicators present mixed signals. While network growth and whale accumulation are positive, the decline in large transactions and the neutral “In the Money” ratio indicate caution. Combined with technical signals like RSI and Bollinger Bands, Toncoin appears to be at a critical juncture. The next market move could be influenced by the increased trading volume and the potential breakout from the current consolidation phase.
