Toncoin (TON) has experienced a significant downturn in its price, dropping by 40% from its peak in June. This sharp decline has left a large portion of investors at a loss, with nearly 80% of holders currently seeing their investment in the red. The negative news surrounding the arrest of Pavel Durov, the founder and CEO of Telegram, has played a significant role in this price drop. Durov’s detention in France over allegations of illicit activities conducted through the messaging app has had a direct impact on Toncoin, which is closely linked to Telegram as the native cryptocurrency of The Open Network.
On-Chain Metrics Predict Further Decline
One concerning factor for Toncoin investors is the on-chain signal Large Transactions, which has been decreasing by 0.46% daily. This indicator tracks the change in the number of transactions over $100,000 and serves as a momentum indicator for the asset. Additionally, the recent analysis by crypto analyst Ali Martinez suggests that Toncoin must reclaim the $4.70 support level to avoid a potential crash to as low as $2.60. These metrics indicate that the price of Toncoin may continue to decline in the near future.
The Road Ahead for Toncoin
Looking ahead, Toncoin investors must closely monitor the market conditions and news surrounding the asset to make informed decisions about their investments. The connection between Toncoin and Telegram makes it particularly vulnerable to fluctuations in the messaging app’s reputation and regulatory issues. As the cryptocurrency market remains highly volatile, investors in Toncoin should be prepared for potential swings in price and take steps to mitigate risks associated with holding the asset.
The recent price drop in Toncoin highlights the importance of conducting thorough research and staying informed about the factors influencing the cryptocurrency market. With on-chain metrics signaling a potential further decline and external factors such as negative news impacting the asset, investors in Toncoin face a challenging road ahead. By staying vigilant and adapting to changing market conditions, investors can navigate the uncertainty surrounding Toncoin and make informed decisions about their holdings.