Toncoin’s (TON) price recorded a double-digit increase last week. However, short-term investors continued their predictions against the altcoin, as evidenced by the constant demand for TON investments. At the time of writing, TON was trading at $6.27. The value of the altcoin increased by nearly 20% in the last seven days. However, many investors continued to open positions against the ongoing rise in the futures market.
What is Happening on the TON Front?
This process can be understood from the token’s negative funding rate on cryptocurrency exchanges. As of the date of this writing, TON’s funding rate was recorded at -0.028%. According to Santiment data, the token’s funding rate has been predominantly negative since June 13.
The funding rate is a mechanism used by perpetual futures contracts to keep the contract price in line with the underlying asset price. When an asset’s funding rate is negative, it indicates that more investors are taking short positions. This means that more investors expect the asset’s price to fall than those who hope to buy the asset and sell it at a higher price.
When more investors are willing to pay to maintain short positions, it indicates a bearish market sentiment. In the case of TON, the consistently negative funding rate shows that the majority of the market expects the asset’s price to continue falling. The decline in TON whale holdings reflects this bearish outlook. According to IntoTheBlock’s data, the net flow of TON’s large holders has dropped by more than 250% in the last month.
TON Chart Analysis
TON price predictions against it may yield positive results as the bearish outlook continues in the spot market. At the time of writing, TON’s price is below the Ichimoku Cloud. This indicator determines the trend direction of an asset, measures momentum, and defines support and resistance levels.
When the asset’s price remains below this, the market is in a downtrend. This is because the cloud represents a significant support and resistance area, and being below it means the price is trading below both short-term and long-term averages. If this bearish outlook continues, TON‘s price could drop to $5.57, allowing short-term investors to profit. However, if TON sees an increase in demand, its price could rise to $6.51, potentially liquidating some short positions.
