Toncoin [TON] has faced a period of challenges following a string of impressive performances earlier in the year. The digital currency surged to an all-time high (ATH) of $8.25 back in June but has since experienced a gradual decline in its price.
As of the latest update, TON is currently being traded at $5.23, showing a decrease of 36.3% from its ATH and a 24% drop over the past fourteen days. This downward trend underscores the unpredictable nature of the crypto market, even for assets with a solid history.
Despite these fluctuations, market experts maintain a positive outlook on Toncoin’s potential amidst the current bullish trend. One such expert, Burak Kesmeci from CryptoQuant, has pointed out the likelihood of a substantial uptrend for TON based on the SMA365 Heatmap metric.
In Kesmeci’s analysis, the current price level of $5.14 is viewed as a “cool zone,” which has historically marked local bottoms in bull cycles. This assessment positions TON for a potential upward trajectory once the market stabilizes.
Evaluation of Price Heatmap and Toncoin’s Bullish Objectives
Kesmeci’s evaluation has identified three key price targets for Toncoin: $8.74, $15.93, and $19.53. These levels are determined using the SMA365 Heatmap, which utilizes moving averages to forecast price patterns.
These targeted levels may increase further during a bullish market as prices gather momentum. The expert suggests that TON could witness a surge of up to 280% in a market predominantly driven by alternative coins.
While these predictions are optimistic, they emphasize the need for careful monitoring of market dynamics.
Beyond the price heatmap, other essential indicators offer insights into Toncoin’s short-term trajectory. Open Interest (OI) information from Coinglass suggests a 1.50% decrease, bringing the current value to $182.96 million.
Additionally, TON’s OI volume has risen by 11.37%, reaching $342.66 million. This mixed performance in derivative markets indicates a cautious stance among investors, possibly influenced by recent price volatility.
Analysis of Whale Activity and Market Ramifications
Another critical element affecting TON’s price prospects is the activity of whale transactions, providing a glimpse into the behavior of large-scale investors. Data from IntoTheBlock shows a significant drop in whale transactions for TON, from over 2,000 transactions on December 17th to approximately 1,220 by December 19th.
This reduction signifies decreased engagement from high-value investors, suggesting either reduced buying pressure or profit-taking at current levels. A decline in whale transactions can have varying effects on Toncoin’s price movements.
On one hand, reduced whale activity might lessen sudden market fluctuations triggered by sizable trades. On the other hand, prolonged inactivity in this segment could signal a lack of confidence in short-term price growth.
Consequently, the market might witness phases of consolidation before any significant shifts occur.