What is the Toncoin holder doing after the unsuccessful recovery attempt?

Toncoin (TON) seemed quite optimistic a week ago. This coin has surpassed the local resistance level of 3.95 dollars at the end of March and has created higher lows in the process. This indicates potential for price increase and the ability to recover to 4.8 dollars on the chart.

However, at the beginning of April, whale activity surged. The daily trading volume increased significantly, but when combined with whale activity, this highlights the potential for a sell-off. Since that time, TON has lost 26.6% of its value in just 8 days. Is the selling pressure becoming significantly stronger compared to the end of March?

Concerning signs for the TON bulls

Source: GlassnodeThe Spent Output Profit Ratio (SOPR) not only tracks whether TON is being sold at a profit or a loss but also compares the fair value at sale with the purchase value. SOPR is calculated by the value of TON when spent divided by the value at the time of purchase.

If SOPR falls below 1, it means that the coins are being sold at a loss. At the end of March, the clear recovery movement of TON caused SOPR to rise above 1. However, this upward trend did not last long.

Source: GlassnodeThe net position change index of hodlers indicates the monthly position changes of long-term holders. Calculated based on the “liveliness” index, this metric allows us to determine whether the market is transitioning from an accumulation phase to a distribution phase.

In February and March, it seems that accumulation activity is taking place as prices are trending down. Over the past 10 days, the net position change index has decreased further, indicating that holders are selling off and the distribution phase may be starting.

This seems quite consistent with the activities of whales and the recent weakness of TON.

Source: TradingViewA bullish market structure breakout occurred on March 27 when it surpassed the lower high at $3.95. The CMF indicator has maintained above +0.05, indicating strong capital inflow into the market since mid-March. However, this trend quickly reversed.

The price of TON has decreased by 32% in just 5 days and the current outlook is negative due to this. At the time of writing, the support level of $3.50 has yet to stop the selling pressure of TON and the CMF index is at -0.14, indicating very strong selling pressure.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should do thorough research before making any decisions. We are not responsible for your investment decisions.

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Dinh Dinh

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