- Toncoin has seen a surge of whale activity on its network.
- However, TON runs the risk of a price drop.
Tonmint [TON] has witnessed a spike in whale activity on its network in recent weeks, CryptoQuant analyst Joao Wedson discovered in a new report.
According to Wedson, whale transactions between 100,000 and 1 million tons on the network recently exceeded $1 billion,
“This indicates significant activity among the largest addresses on the network.”
Wedson added that while the smaller transactions under 100 TON make up the vast majority of total activity on the Toncoin network, although:
“Their impact is relatively low, only moving about 4 to 5 million tons on the blockchain.”
In contrast, large transactions between 100,000 and 1 million TONNES account for more than half (53%) of the network’s total volume.
Furthermore, transactions of over 1 million TON currently represent 30% of Toncoin’s total volume.
TON whales fail to move the needle
Despite the increase in whale activity on its network, TON is on the verge of breaking the bottom line of its ascending channel, which has formed a key support level since the beginning of the month.
When an asset’s price trend moves in this direction, it indicates that selling pressure is outweighing buying pressure, and a price drop is imminent.
TON’s recent decline below the 20-day Exponential Moving Average (EMA) increases the likelihood of a price decline.
Measurements of the coin’s price movements on a daily chart showed that the price of TON fell below the 20-day EMA on May 17. This was the first time this happened since the beginning of the month.
This crossover is important because it suggests that TON’s press-time price has fallen below its average price over the past 20 days. It marks a shift towards selling momentum and a possible decline in the price of the coin.
Since then, TON’s value has fallen by 3%. According to CoinMarketCapthe altcoin was trading at $6.45 at the time of writing.
TON’s MACD line, which confirms the rise in bearish sentiments, was about to dip below its signal line at the time of writing.
Source: TON/USDT on TradingView
Is your portfolio green? View the TON Profit Calculator
When this happens, it would mean that the short-term moving average of the currency has fallen below the long-term moving average, meaning a loss of upside momentum.
If TON breaks the support, the price could fall below $6 to trade at $5.70. However, if this is not confirmed, a rally towards $6.7 is in the books.