Toncoin (TON) has recently experienced a significant decline in its price, leaving a large portion of its investors at a loss. The cryptocurrency, which saw a bull run at the beginning of 2024, reached an all-time high of nearly $8.20 in mid-June. However, the price has since dropped by 40% to approximately $4.80. This downward trend began following the arrest of Pavel Durov, the founder and CEO of Telegram, the messaging app associated with TON.
Investors holding Toncoin (TON) are currently facing substantial paper losses, with almost 80% of holders in the red. This negative sentiment has been exacerbated by on-chain data indicating a potential further decline in price. The metric Large Transactions, which measures the change in the number of transactions exceeding $100,000, is down by 0.46% daily. This decline suggests a lack of strong buying activity, signaling a possible continued downward trajectory for TON.
Crypto analyst Ali Martinez has highlighted the importance of TON reclaiming the $4.70 support level to avoid a potential crash to as low as $2.60. The recent price movement above this support level on September 6 may offer temporary relief, but the overall outlook remains bearish. Should TON fail to maintain this level, further downside could be in store for the cryptocurrency.
The negative news surrounding Pavel Durov’s arrest and its impact on Telegram has spilled over to TON, given their interconnected relationship. As a result, investor sentiment has taken a hit, with a majority of holders currently experiencing losses. The correlation between negative developments in the broader ecosystem and TON’s price decline highlights the interconnected nature of the cryptocurrency market.
Toncoin (TON) has faced significant challenges in recent months, leading to a sharp decline in price and investor losses. On-chain metrics, technical analysis, and external factors such as negative news all point to a bearish outlook for TON in the near future. Investors should closely monitor price movements and key support levels to assess the cryptocurrency’s potential for recovery amidst ongoing market turbulence.
