Toncoin (TON) Sees Double-Digit Price Gains Amidst Bearish Sentiment
Over the past week, Toncoin (TON), a cryptocurrency associated with popular messaging app Telegram, has experienced significant price increases. Despite this positive performance, short traders are maintaining their short bets, reflecting a bearish sentiment prevailing in the market.
Continued Short Interest in Toncoin
Currently trading at $6.27, TON has seen a nearly 20% increase in value in the last seven days. However, many traders are still holding on to short positions in anticipation of further gains in the futures market, as evidenced by the negative funding rates observed on cryptocurrency exchanges.
The funding rate for TON is currently at -0.028%, indicating a predominance of short positions in the market since June 13. This negative funding ratio suggests that the majority of traders are bearish on TON’s outlook and expect its price to continue declining.
Furthermore, data from IntotheBlock shows a significant decrease of over 250% in net inflows from large TON holders over the past month. This reduction in whale holdings adds to the pessimistic sentiment surrounding the cryptocurrency.
Bearish Price Predictions for TON
As the spot market maintains a bearish trend, short bets on TON’s price are expected to yield positive results. Currently, TON’s price is below the Ichimoku Cloud, indicating a potential downtrend.
If the bearish sentiment persists, TON’s price could drop to $5.57, providing an advantage to short traders. However, if there is a sudden surge in demand for TON, the price may rise to $6.51, leading to the liquidation of some short positions.
Conclusion
Despite the recent price gains, the bearish sentiment surrounding Toncoin remains strong, with short traders holding on to their positions in anticipation of further losses. The market dynamics, evidenced by negative funding rates and reduced whale holdings, suggest a continued downward trend for TON in the near future.
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