Toncoin (TON) witnessed a significant decline from its peak in June, currently trading at a 40% lower value. The once-promising asset saw a sharp drop after reaching an all-time high of nearly $8.20 earlier in the year. Unfortunately, this momentum was short-lived, and the price has since plummeted to around $4.80, leaving many investors at a loss.
The arrest of Pavel Durov, the founder and CEO of Telegram, had a profound impact on Toncoin’s price trajectory. Durov was detained in France on charges related to illicit activities conducted through the messaging app, including drug trafficking, fraud, and child sexual abuse. As Toncoin is closely associated with Telegram, the news of Durov’s arrest contributed to the asset’s downward spiral and negatively affected investor sentiment.
Data from IntoTheBlock reveals that a significant majority of Toncoin holders, approximately 80%, are currently facing losses with only a small percentage in profit. This puts Toncoin in a precarious position, with a higher ratio of investors underwater compared to other cryptocurrencies like Cardano (ADA). Additionally, on-chain metrics such as Large Transactions indicate a potential further decline in Toncoin’s price. The indicator, which measures the change in transactions exceeding $100,000, is showing a daily decline of 0.46%.
Technical Analysis and Market Outlook
Crypto analyst Ali Martinez has warned that Toncoin must reclaim the $4.70 support level quickly to avoid a drastic crash to as low as $2.60. This analysis underscores the importance of key support levels in determining the future price movement of the asset. The recent price action and market sentiment suggest that Toncoin may be in for a turbulent period ahead, as investors grapple with uncertainty and volatility in the cryptocurrency market.
The recent developments surrounding Toncoin have highlighted the challenges faced by investors in the crypto space. Legal issues, market volatility, and on-chain indicators all play a role in shaping the price trajectory of assets like Toncoin. As investors navigate these challenges, staying informed and conducting thorough research are crucial in making informed decisions in the ever-changing crypto landscape.