Toncoin (TON) has recently broken back above the $5 mark, suggesting potential movement towards its all-time high. However, increasing volatility has led traders to reassess their positions, raising red flags about the token's future. Data from Santiment indicates that Toncoin's Funding Rate has turned negative, meaning shorts are paying the fees, which implies bearish sentiment among traders expecting a price drop.

Additionally, IntoTheBlock data shows a 204% decline in Large Holders Netflow over the past week, indicating that more tokens are being sold than purchased by key investors. This trend further suggests that Toncoin may struggle to reach the $7 mark in the short term, as selling pressure builds.

On the daily chart, Toncoin faces resistance at $5.68, a level that previously halted its progress. Without significant buying volume, TON risks falling to $5.21, and in a bearish scenario, it could dip as low as $4.88. However, if it surpasses the resistance, the price could rise to $6.71.