- TON witnessed a massive surge in price, however, its volume declined significantly.
- Network Growth and Velocity grew as well.
Toncoin [TON] saw a massive surge in price over the last 24 hours and grew by 7% during this period. However, the volume at which TON was being traded had declined significantly.
TON’s price grows
This low volume spike in price suggests a few possibilities. It could be a short squeeze, with rising prices forcing short sellers to buy back TON, but with limited sellers remaining to push the price even higher.
Alternatively, large investors might be accumulating TON at a premium, driving the price up without a high volume of trades.
At press time, TON was trading at $7.62. The price of TON had retested the $7.659 level and weakened it even further.
If there is more bullish interest in TON going forward, the price of TON could reclaim its previously attained all-time high.
The RSI (Relative Strength Index) for TON was on its side at 66.4, implying a high bullish momentum supporting the TON rally.
Moreover, the CMF (Chaikin Money Flow) had also grown significantly in the last few days, indicating that there was a surge in money flowing into Toncoin at the time of writing
Source: Trading View
In it for the long haul
Coming to the state of the holders, AMBCrypto’s analysis of IntoTheBlock’s data revealed that the average user held TON for around 6.8 months. This indicated that most of these holders were in it for the long term.
Investors who are bullish on TON are less likely to sell their coins on short-term price fluctuations. This reduces the overall supply of TON available for trading, which can contribute to price increases.
Long-term holders tend to be less reactive to short-term market movements. This can help to dampen volatility in the TON price, as there’s a smaller pool of holders looking to cash out on quick gains.
Source: IntoTheBlock
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Both the network growth and the velocity of the TON token had fallen in the last few weeks. However, as the price of TON surged recently, so did the Network Growth and Velocity.
This meant that new addresses were starting to show interest in TON, along with that the frequency at which TON was being traded at had also grown.
Source: Santiment