TON Price Prediction: Double-Digit Price Decline Imminent as Toncoin Investors Stay Away

Telegram-linked Toncoin (TON) has seen a slight 1% increase in price over the past week. However, this merely mirrors the broader market uptrend, as it has yet to enjoy a significant demand from its whales or retail investors.

Telegram-linked cryptocurrency Toncoin (TON) has shown a mild 1% price appreciation in the past week. But this move seems to be mirroring the broader market uptrend, as the altcoin has yet to see any substantial demand from its whales or retail investors.

The altcoin risks posting a double-digit price decline in the near term if demand remains low. Here's why.

Toncoin investors stay away

Toncoin's market value to realized value (MVRV) ratio, which gauges the overall profitability of all its holders, suggests that the altcoin has been trading at a loss in recent weeks.

As of press time, the token's 30-day and 90-day MVRV ratios stand at -0.26% and -5.38%, respectively.

Negative MVRV ratios have historically served as a buying signal, indicating that the asset is being sold below its historical acquisition cost and might be due for a recovery. But this has failed to serve as sufficient motivation for Toncoin investors to accumulate the token.

Over the past week, there has been a 115% decline in the netflow from Toncoin's large holders, despite a 1% increase in its price.

An asset's large holders, or addresses holding more than 0.1% of the circulating supply, are important indicators of market trends. Their netflow — the difference between what they buy and sell over a set period — can offer insight into market sentiment.

When an asset's large holder netflow turns negative, it indicates that whales are decreasing their holdings — a bearish signal that suggests selling pressure and the potential for a price drop.

Toncoin's short-term holders (STHs) have also been decreasing their holding time, which adds to the risk of a price decline.

According to IntoTheBlock, their holding period has decreased by 7% over the last month.

STHs, who typically hold assets for less than 30 days, might sell when looking to lock in profits or avoid losses from a predicted price drop. A reduction in STH holdings often signals lower demand, adding further downward pressure on the asset's price.

TON price prediction: Double-digit price decline on the horizon

At the moment, Toncoin is trading at $5.33, close to the $5.35 resistance level. If its whales and STHs continue reducing their holdings, a breakout above this resistance will likely be unlikely.

Failure to cross this level could lead to a 17% drop, bringing Toncoin's price down to $4.44, a level last seen on Sept. 6.

On the other hand, if market sentiment improves and demand for Toncoin increases, it could break through the $5.35 resistance and rally toward $6.81.

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