Whales offload Toncoin as “altcoin season” faces challenges: TON netflow down 97%

Telegram-based Toncoin sees its market dominance dwindle after a remarkable performance that saw TON outshining established projects such as Cardano (ADA).

The downbeat mode comes as whales lose patience, with the anticipated “altcoin season” facing challenges.

The alt space displays weakness as the Altcoin Season Index plunged to 16, according to blockchaincenter.

The metric should hit 75 (where over 75% of the top 50 altcoins outdo BTC) to confirm an ‘alt season.’

Whales trigger TON declines

Actions by dip-pocketed investors contribute to Toncoin’s current outlook. These entities hold massive amounts of assets circulating supply – influencing market movements with their every move.

IntoTheBlock data shows TON’s whale netflow rate plummeted by 97.05% within the past week.

That comes after Toncoin witnessed substantial inflows in the last few weeks. Netflow rate is the difference between outflows and inflows from large investors.

Positive netflow means whales are buying more than selling, while negative numbers, like Toncoin’s case, imply the vice versa.

IntoTheBlock detailed that whales offloaded 1.4 million TON coins between 21 July and 28 July.

Such developments catalyzed Toncoin’s current bearish outlook. Also, profit booking after the recent upticks dented the alt’s trajectory.

Toncoin whales could be fleeing due to the delayed altcoin season. Altcoins failed to match the expected excitement following the spot Ethereum ETFs launch, recording minor price moves.

Further, the Altcoin Season index shows it could take time before a ‘full swing’ alt season.

Current altcoin market outlook

The alt space displayed mixed actions, with most assets reflecting bearish tendencies. Moreover, blockchaincenter data shows “It’s Bitcoin Season,” suggesting more pain for altcoins.

The Altcoin Season index was 16 at press time and needs to hit 75 to confirm an altcoin season.

With such a gap, it remains challenging for altcoins to outshine the bellwether Bitcoin.

The decline index reflects faded investor interest in multiple tokens. Such trends could hurt demand and force prices to hover at lower regions as the alt season fades away.

TON price outlook

The Telegram-based tokens have suffered declines amidst the abovementioned developments.

TON trades at $6.65, down 1.98%, 4.20%, and 14% in its daily, weekly, and monthly charts. Technical indicators confirm TON’s downward stance. For instance, the negative Awesome Oscillator highlights the diminishing momentum behind Toncoin.

Further, the Moving Average Convergence Divergence swayed in the red region, magnifying the probability of declines.

Continued bearish actions could plunge TON to $6.57, opening the path to $6.02.

Nevertheless, analysts remain optimistic about massive rallies in the crypto sector. Michael van de Poppe forecasts an ETH rally to 7K before 2024 ends.

An Ethereum surge will revitalize the altcoin space, and attract fleeing players. That would trigger notable recoveries for TON.

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