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Toncoin Price Braces for Major Volatility as These Investors Step Back

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In Brief

  • Toncoin struggles to break the $5.37 resistance, with growing volatility suggesting an imminent price surge.
  • Shift from short-term to mid-term holders indicates improved price stability, reducing selling pressure.
  • A breakout above $5.37 could push Toncoin to $6.00, but failure may lead to a drop toward $4.86.
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Toncoin (TON) price has struggled to breach the critical $5.37 barrier throughout the month. Despite several attempts, the cryptocurrency has been unable to maintain momentum above this level. 

However, Toncoin appears poised for major volatility, and the market is now anticipating a possible price surge. Investors are keeping a close watch as the coin prepares for what could be a significant shift in its price trajectory.

Toncoin Investors Change Stance

Recent data indicates that Toncoin’s supply is shifting from short-term holders (STH) to mid-term holders (MTH). In the last two weeks, the supply controlled by short-term holders has dropped from 50% to 35%, while mid-term holders have increased their share by 15%, now controlling 61% of all TON. 

This change is crucial because short-term holders, typically holding for less than a month, are more likely to sell quickly. In contrast, mid-term holders tend to retain their assets for one to twelve months, which often supports price stability. The growing dominance of mid-term holders is seen as a positive sign for Toncoin’s price

Read more: What Are Telegram Bot Coins?

Toncoin Supply Distribution.
Toncoin Supply Distribution. Source: IntoTheBlock

Toncoin’s macro momentum also suggests a potential price surge. Technical indicators like the Bollinger Bands are currently forming a squeeze, indicating that the price is consolidating and preparing for increased volatility. 

A Bollinger Bands squeeze is often followed by significant price movements, and with the current low trading volume, any major market movement could amplify this effect. If the broader cryptocurrency market trends remain bullish, this squeeze could propel Toncoin’s price upward.

Toncoin Bollinger Bands.
Toncoin Bollinger Bands. Source: TradingView

TON Price Prediction: Volatility Ahead

Toncoin is currently trading at $5.19, just shy of the critical $5.37 resistance level. Breaching this barrier is crucial for a potential rally toward $6.00. Investors are watching this key level closely, as surpassing it could signal a bullish run.

The technical and market indicators suggest that a breach of $5.37 is likely, especially as volatility increases and selling pressure remains low. However, simply breaking the resistance is not enough; Toncoin needs to hold $5.37 as a support level to maintain its momentum and prevent a quick reversal.

Read more: What Are Telegram Mini Apps? A Guide for Crypto Beginners

Toncoin Price Analysis.
Toncoin Price Analysis. Source: TradingView

If Toncoin fails to sustain its position above $5.37, a drawdown to $4.86 is possible. In this case, the failed breach would result in a retracement, cooling off the current bullish sentiment. Investors should monitor the market closely to gauge whether Toncoin can secure its breakout or fall back to lower levels.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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