On several occasions, Toncoin’s (TON) price has shown readiness to retest the $7 mark. But since late July, almost every time it inches close to the region, it pulls back, leaving investors worried about the cause.

Fortunately, BeInCrypto has identified a daunting sell wall that is hindering the Telegram-native cryptocurrency from maintaining a prolonged rally. This on-chain analysis reveals all the details and what TON needs to breach this point successfully 

Pressing Issues for Toncoin’s Future

Currently, Toncoin’s price is $5.20, representing a 10% decline in the last seven days. This value also means that the token is 37% down from its all-time high, with about 75% of its holders out of the money.

These TON holders are currently out of money because most accumulate it at a higher value than the current price. Interestingly, the In/Out of Money Around Price (IOMAP) reveals that Toncoin’s price might not move substantially higher unless some of these holders give way.

Specifically, the IOMAP provides an idea of support and resistance using the volume purchased at certain price ranges. The larger the volume or cluster, the larger the support or resistance. For Toncoin, about 5.33 million hold 610.55 million tokens and buy the token at an average price of $5.23.

Read more: 6 Best Toncoin (TON) Wallets in 2024

This volume is higher than that of those who purchased it, between $4.49 and $5.05. It is also a lot bigger than the volume bought by the 8,330 addresses currently at the break-even point. Considering this condition, TON is less likely to get support from these addresses.

Instead, the token might face huge challenges in surpassing $5.23 since that zone is a significant supply wall. Further, the Mean Dollar Invested Age (MDIA) is another factor Go to Source to See Full Article
Author: Victor Olanrewaju