- Toncoin shows bearish signs with a negative funding rate and sell-offs.
- Large holders are selling more, increasing pressure on Toncoin’s price.
- Toncoin faces resistance at $5.68; potential drops if buying pressure weakens.
Toncoin (TON) has shown signs of weakness after briefly climbing back above the $5 mark. Despite the recent rise, market data suggests traders are bracing for a possible price drop.
With key bearish signals emerging, Toncoin’s short-term outlook is uncertain. Here are two signals that point to a potential downturn for TON.
Negative Funding Rate Signals Trouble
One red flag for Toncoin is a negative funding rate. This rate reflects the cost of holding open futures positions.
Traders betting on the price dropping (shorts) pay those expecting the price to rise (longs) when this rate is negative. Toncoin’s negative rate means shorts are paying, meaning traders anticipate a decline.
This shift in sentiment, combined with Toncoin’s recent rise, suggests traders see more downside ahead. If buying pressure doesn’t pick up, the token could struggle to hold current levels.
Large Holders Are Selling Off
Another bearish signal comes from the drop in large holder netflow. According to IntoTheBlock, this metric has fallen by 204% over the past week. This means big investors are selling more Toncoin than they are buying.
When large holders sell off, it often triggers more selling pressure. If this trend continues, it could make it harder for Toncoin to maintain or increase its price. Without support from major investors, the token might see further declines.
Will the $5 Support Hold?
Toncoin (TON) is facing tough resistance at $5.68. This level has blocked the token’s progress twice already, making it a key hurdle. If buyers fail to push through, Toncoin could drop to $5.21. In a highly bearish market, the price could even fall as low as $4.88.
But if they break through the $5.68 resistance, the price of TON could rise to $6.71. For this scenario to play out, stronger trading volume to support a move higher will be needed. The negative funding rate and large holder sell-offs suggests that the price of TON might continue dropping. Traders should keep an eye on these signals to gauge whether Toncoin can stabilize or plummet further.
The post Toncoin (TON) Traders Eye Bearish Shift: 2 Signs of a Price Drop to Watch Out For appeared first on Crypto News Land.
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