During Monday’s U.S. market session, the crypto market showed a bullish outlook, with Bitcoin price holding the $95,000. While the Toncoin price shows a similar momentum in the intraday chart, an analysis of its latest onchain data shows concerning figures that could constrain its growth potential.
By press time, the Toncoin price trades at $3.82 with an intraday gain of 0.3%. According to Coingecko data, the asset market cap is at $9.5 Billion, while the 24-hour trading volume is at $144.2 Million.
Key Highlights:
- An ascending trendline drives the current uptrend in Toncoin price.
- A long-tail rejection candle at $3 hints at renewed demand pressure during market pullback
- 91% of Toncoin’s supply is concentrated among large holders, raising concerns about potential market manipulation.
Toncoin Price Struggles as 95% of Investors Remain at a Loss,
The onchain analytics platform Intotheblock reveals a concerning trend for Toncoin (TON) investors, with 95% of holders currently at a loss. The cryptocurrency, currently trading at $3.8, has witnessed a notable decline in the last two months, leaving only 4% of investors in profit, while 1% at break-even.
The majority of holders in loss bring a significant risk as a prolonged correction could create panic selling as holders cut losses to avoid further declines, making a recovery difficult.
Adding to investor concerns, 91% of Toncoin’s supply is concentrated among large holders, indicating a potential centralization risk. This heavy concentration creates liquidity and volatility issues, as whale momentum could significantly impact price movement.
Furthermore, 89% of holders held their TON for less than a year, and only 3% were invested as long-term holders. This distribution suggests a lack of strong investor conviction, with most participants opting for shorter holding periods, potentially contributing to higher volatility.
TON Seeks Support at Multi-Month Trendline
Over the past two months, the TON has underperformed the broader market as its correction recorded a price from $7.19 to $3.8, accounting for a 48% loss. The downward trend has recently breached the multi-month support of $4.5, accelerating a further decline in price.
Thus, the Toncoin price plunged to the current trading price of $3.8, seeking support at a long-coming support trendline. Since June 2023, the ascending trendline has acted as a crucial pullback support for buyers to build bullish momentum.
A potential bounce could bolster buyers to rechallenge the $4.56 resistance and restore recovery sentiment.
Conversely, a breakdown below the lower trendline will drive a prolonged correction.
Also Read: Supreme Court Lawyer Arrested for Crypto-Related Crimes
Source: https://www.cryptonewsz.com/toncoin-price-struggles-91-supply-large-holders/