Ton Coin Whale Holdings Turn Negative: Bears to take Over Price Action?

TON’s native coin Ton coin has arguably been one of the top performing altcoins in the last 2 weeks. Also one of the more interesting ones in the last 4 weeks and its performance reveals a lot especially in regards to whale activity.

But before we get to the whales, Toncoin has so far pulled off a 55% gain from its lowest price so far this month, to its $3.67 press time price tag. This also means it was back to the same price level where it previously experienced a lot of sideways movement and uncertainty in February.

The retest of this previously significant price level brings forth some interesting questions. Will the bulls maintain their uphill climb, find indecisiveness or give way to the bears?

TON Coin Whales on the Move Again

It is worth noting that price was not overbought at the time of observation. However, this may not offer much security against the downside for one main reason. Whales appear to be taking profit after the recent upside.

TON large holder flows were in the negative at the time of observation, by -7.55 million coins. In other words, whales sold over $27 million worth of Toncoins on 18 March.

Whale inducement was observed before every dip and rally within the last 4 weeks. In this case, the negative large holder flows could signal a surge in profit-taking after the latest upside.

This could potentially curtail Toncoin’s upside and perhaps even trigger a wave of sell pressure that might be enough to cause a bearish pivot. At least that could be the case in the short term especially as the markets remain skittish due to political-economic influences.

Toncoin Funding Rates Pivot

Ton coin derivatives still maintained a positive stance at the time of observation. Open interest was up 2.4% while volume was up by 8.12%. Spot flows also remained in the green with about $7.57 million worth of inflows in the last 3 days.

While spot and derivatives activity demonstrated that Toncoin was still experiencing healthy demand, funding rates told a different story. Funding rates shifted back to negative in the last 24 hours.

The negative funding rates indicate a surge in short positions, which signals that investors are anticipating some downside.

Despite the surging bearish expectations, the recent leverage shakedown may limit downside. Meanwhile, Toncoin’s long term outlook remains bullish on account of multiple factors.

TON was one of the fastest growing networks in the last 12 months. Its latest activities highlight its determination to maintain the status quo. For example, its Tonco.io DEX which launched in Q4 2024 may pave the way for more Toncoin organic demand.

Toncoin is still trading a considerable discount (55%) from its historic peak in June. It managed to tap heavily to growth opportunities especially though play-to-earn games on Telegram.

Now that controversy around its founder has subsided, it will be interesting to see where and how Ton coin price will secure its next catalyst.