Toncoin (TON) was once riding high on a bull run at the beginning of 2024, reaching an all-time high of nearly $8.20 in mid-June. However, the tides quickly turned, and the asset is now trading at around $4.80, a significant 40% drop from its peak earlier in the summer. The decline began following the arrest of Pavel Durov, the founder and CEO of Telegram, on charges related to illicit activities linked to the messaging app. Since Toncoin is closely associated with Telegram as its native cryptocurrency for The Open Network, the negative news surrounding Durov has cast a shadow over the asset and its investors.
Data from IntoTheBlock reveals that a staggering 80% of Toncoin holders are currently facing losses, with only 9.3% managing to stay in the green. This puts Toncoin in the same boat as Cardano (ADA), another major cryptocurrency where nearly 85% of holders are experiencing losses. One concerning on-chain metric is the signal for Large Transactions, which has been decreasing by 0.46% daily. This indicator, measuring the change in transactions larger than $100,000, suggests that Toncoin’s price could be heading towards further decline in the near future.
Crypto analyst Ali Martinez recently warned that Toncoin must reclaim the $4.70 support level swiftly to avoid a potential crash to as low as $2.60. The price briefly surpassed this critical level on September 6, but the looming threat of a significant drop remains. With negative sentiment surrounding both Toncoin and its parent company Telegram, investors are on edge about the future prospects of the asset. The volatility and uncertainty in the market make it crucial for Toncoin to regain investor confidence and stability in order to avoid further losses.
The sharp decline in Toncoin’s price and the associated negative news have dealt a significant blow to investors. The on-chain metrics point towards a potential further drop in the asset’s value, adding to the uncertainty and risk in the market. As Toncoin navigates these challenging times, it will be essential for the project to address concerns, regain trust, and demonstrate resilience in the face of adversity to secure its future in the competitive cryptocurrency landscape.
