Toncoin Price Braces for Major Volatility as These Investors Step Back

Toncoin (TON) price has struggled to breach the critical $5.37 barrier throughout the month. Despite several attempts, the cryptocurrency has been unable to maintain momentum above this level.

However, Toncoin appears poised for major volatility, and the market is now anticipating a possible price surge. Investors are keeping a close watch as the coin prepares for what could be a significant shift in its price trajectory.

Toncoin Investors Change Stance

Recent data indicates that Toncoins supply is shifting from short-term holders (STH) to mid-term holders (MTH). In the last two weeks, the supply controlled by short-term holders has dropped from 50% to 35%, while mid-term holders have increased their share by 15%, now controlling 61% of all TON.

This change is crucial because short-term holders, typically holding for less than a month, are more likely to sell quickly. In contrast, mid-term holders tend to retain their assets for one to twelve months, which often supports price stability. The growing dominance of mid-term holders is seen as a positive sign for Toncoins price.

Toncoin Supply Distribution. Source: IntoTheBlock

Toncoins macro momentum also suggests a potential price surge. Technical indicators like the Bollinger Bands are currently forming a squeeze, indicating that the price is consolidating and preparing for increased volatility.

A Bollinger Bands squeeze is often followed by significant price movements, and with the current low trading volume, any major market movement could amplify this effect. If the broader cryptocurrency market trends remain bullish, this squeeze could propel Toncoins price upward.

Toncoin Bollinger Bands. Source: TradingView

TON Price Prediction: Volatility Ahead

Toncoin is currently trading at $5.19, just shy of the critical $5.37 resistance level. Breaching this barrier is crucial for a potential rally toward $6.00. Investors are watching this key level closely, as surpassing it could signal a bullish run.

The technical and market indicators suggest that a breach of $5.37 is likely, especially as volatility increases and selling pressure remains low. However, simply breaking the resistance is not enough; Toncoin needs to hold $5.37 as a support level to maintain its momentum and prevent a quick reversal.

Toncoin Price Analysis. Source: TradingView

If Toncoin fails to sustain its position above $5.37, a drawdown to $4.86 is possible. In this case, the failed breach would result in a retracement, cooling off the current bullish sentiment. Investors should monitor the market closely to gauge whether Toncoin can secure its breakout or fall back to lower levels.