Will Toncoin short-term holders help the price bounce back?

Toncoin (TON), Telegram's native cryptocurrency, has seen its price drop by 17% in the past 30 days. As a result, the price of a ton fell below $5 before falling slightly.

Despite this decline, the value of the cryptocurrency may be in line to recover some of the losses. This confirmation is due to a change in the sentiment of Toncoin's short-term holders, this analysis on the chain shows.

Toncoin holders push to get it back

While the price of a ton may have fallen below $5, data from IntoTheBlock shows that the token's holding time has increased. In the last seven days, this parameter, which measures the time a cryptocurrency is held without being sold, has increased by 142%.

Typically, as the holding period decreases, short-term holders lose faith in crypto's potential. However, since it has increased, Toncoin's short-term holders believe that a rebound is imminent.

For that to happen, the token's holding period must maintain this momentum. If that happens, the price of Toncoin may not increase the 17% monthly decline.

Read more: What are Telegram Bot Coins?

Another factor supporting this bias is the large holder's net flow to exchange ratio. This metric basically shows that large cryptocurrency holders are sending more tokens to the exchange.

As the ratio increases, these stakeholders are transferring more tokens to exchanges, which usually indicates an interest in selling. Conversely, a decline in the ratio suggests that investors are avoiding sending tokens to centralized platforms and selling them.

Therefore, the decline, as shown below, indicates that Tonkoin whales have stopped destroying their property. If that remains the same, it will have a positive impact on tonne prices.

Price forecast for a ton: A rally to $6 will begin

From a technical point of view, Toncoin is showing a significant increase in the Money Flow Index (MFI). An MFI, as the name suggests, is the extent to which liquidity is entering into a currency crypt.

A higher MFI signals increased buying pressure, while a lower MFI increases selling pressure, usually indicating a bearish price trend. For the ton, the buying pressure is currently high, suggesting that this cryptocurrency may be pushed above $5.22.

Using the Fibonacci indicator that identifies key support and resistance levels – increasing buying pressure could push the price of Toncoin up to $6.15.

Read more: 6 Best Toncoin Wallets in 2024

However, if Toncoin's short-term holders choose to sell some assets, this upward trend may be interrupted, which may cause the price to return to $4.46.