How Token Traders Are Reacting To Token Price Movements
In the year On November 1, the price of Toncoin (ton) fell below $5 after holding the line for several days. Following this drop, traders are taking more bearish bets, reflecting broader market sentiment as Bitcoin (BTC) and other cryptocurrencies have experienced recent losses.
However, in Ton's case, this analysis suggests that recovery may remain challenging even if the broader market recovers.
Toncoin market sentiment turns bearish
Derivatives information portal Coinglass shows that Toncoin's long/short ratio has dropped to 0.88. The long/short ratio is a measure used to assess the balance between long positions (buyers) and shorts (sellers) in the market.
A long/short ratio greater than 1 indicates long positions rather than short positions, indicating that most traders expect prices to rise. Conversely, a ratio below 1 indicates a lot of shorts, which indicates a bearish attitude.
According to BeInCrypto's analysis, 53% of Toncoin traders are short positions while 47% are long positions. This spread reflects a generally subdued sentiment around altcoins.
Read more: What are Telegram Bot Coins?
Also, there seems to be a strong rationale behind the traders' stance. On-chain data showed a significant increase in Average Dollar Invested Age (MDIA)—the average age of all tokens on the blockchain, weighted by purchase price.
A declining MDIA typically indicates an active movement of tokens, increasing the chances of a price increase.
However, the recent rise in MDIA shows that most of the Tokens have been dormant. If this trend continues, the price of Toncoin may struggle to move higher.
Ton price forecast: No decline yet.
As of this writing, Toncoin's price is $4.87. According to the daily chart, the altcoin has fallen below the threshold due to the lack of buying volume. Following this, the tone dropped below key EMAs.
A rising EMA generally supports growth, acting as a dynamic support level, while a falling EMA often acts as resistance, blocking an upward move.
As shown below, the tone price is below the 20 (blue) and 50 (yellow) EMA. This indicates that the trend around Toncoin is low, and the price may continue to decline. If this is the case, the altcoin could drop to $4.46, making most toncoin traders profitable.
Read more: 6 Best Toncoin Wallets in 2024
On the other hand, if the cryptocurrency retests the 23.6% Fibonacci retracement level, the price may rise to $6.20.
Disclaimer
In accordance with 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 do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
