- Toncoin faces downward pressure as exchange supply increases, hinting at a potential sell-off in the market.
- Rising exchange supply and declining prices signal a bearish trend, raising concerns for Toncoin investors.
- As exchange supply peaks, Toncoin’s price hits new lows, showing a strong inverse relationship between the two.
More than 240,000 Toncoin (TON) have transferred to exchanges in the last week, suggesting possible selling pressure. Santiment’s on-chain data demonstrates the effects of this change. The relationship between Toncoin’s price and its exchange supply reveals significant market movements. The latest data suggests a possible bearish trend as the token’s availability for sale increases.
Price Volatility and Market Trends
The price of Toncoin increased from January 10 to January 16 and peaked locally during that time. After January 16, nevertheless, there was a steep drop followed by short rebounds. The token’s exchange supply gradually increased over this time. More holders may have relocated their assets to exchanges in anticipation of a sale, as shown by the expanding supply.
From January 18 to January 21, Toncoin’s price experienced frequent fluctuations. The price saw notable dips and recoveries, while the exchange supply increased slightly. This trend continued after January 21, as the price faced downward pressure. As the price weakened, exchange supply formed step-like increases, reinforcing a potential sell-off pattern.
Declining Price and Rising Exchange Supply
By January 23, Toncoin’s price formed lower highs and lower lows, indicating continued downward momentum. During this period, the exchange supply kept rising, suggesting that more tokens became available for sale. As the trend continued, Toncoin reached a lower level by January 26, further reinforcing bearish sentiment.
On January 29, Toncoin’s price declined to approximately $4.766, marking one of its lowest points. Meanwhile, the exchange supply peaked, setting a record high within the observed timeframe. The data reflects an inverse relationship—when supply on exchanges rises, the price tends to decline.
Market Implications and Investor Sentiment
This trend raises concerns among investors. Historically, an increasing exchange supply has signaled higher selling pressure. Consequently, the likelihood of continued downward momentum remains high. If this trend persists, Toncoin may face further price corrections.
Ali, an analyst tracking Toncoin’s movements, noted that such patterns often indicate potential sell-offs. Moreover, the consistent supply increase suggests that investors may be offloading assets, contributing to the declining price trend.
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