Whales Accumulate Toncoin Despite Price Risks: What's Next?

Toncoin (TON) has witnessed a surge in whale activity on its network in recent weeks, as reported by CryptoQuant analyst Joao Wedson. There has been a noticeable increase in wallet addresses holding between 100,000 and 1 million TON tokens.

Wedson suggests that this uptick in accumulation by major players indicates the asset's potential and perceived value. Despite the ongoing accumulation, Toncoin's price chart suggests a potential short-term decline.

TON Faces Short-Term Price Risks Amid Weakening Buying Pressure

Currently trading at $6.43, TON has experienced a 20% increase in value over the past month. However, indicators like the Relative Strength Index (RSI) and Money Flow Index (MFI) show signs of weakening buying pressure.

Source: TradingView

The RSI at 52.57 and MFI at 23.39 indicate a bearish divergence, suggesting that the recent price increase may not be sustainable. The Parabolic SAR indicator dots above TON's price and the MACD line below its signal line further confirm a potential downtrend.

The setup, with the MACD line falling below the signal line, is considered bearish, indicating weakened upward momentum. Traders may interpret this as a signal to exit short positions and consider long positions.

Despite the accumulation by whales, TON faces price risks in the short term due to weakening buying pressure and bearish indicators. Traders should exercise caution and closely monitor market developments before making any investment decisions.