The Rise and Fall of Toncoin (TON): Analyzing the Recent Price Drop

The Rise and Fall of Toncoin (TON): Analyzing the Recent Price Drop

Toncoin (TON) has recently experienced a significant drop in price, with it currently trading 40% lower than its peak in June. This sharp decline has left nearly 80% of its investors at a loss, highlighting the impact of negative news on the cryptocurrency market.

The price of Toncoin started declining after the arrest of Pavel Durov, the founder and CEO of Telegram. Durov was detained in France over accusations that the messaging app was being used for illicit activities such as drug trafficking, fraud, and child sexual abuse. As Toncoin is closely related to Telegram as the native cryptocurrency of The Open Network, the negative news surrounding Durov has had a significant impact on the price of TON.

According to IntoTheBlock data, nearly 80% of Toncoin holders are currently facing losses, with only 9.3% of investors in the green. This ratio of investors at a loss is one of the highest among the top cryptocurrencies, indicating a strong bearish sentiment towards TON. Additionally, the on-chain signal Large Transactions, which tracks transactions greater than $100,000, is down 0.46% daily, suggesting that the price of TON may continue to decline in the near future.

Crypto analyst Ali Martinez has warned that Toncoin needs to reclaim the $4.70 support level soon to avoid a further crash to as low as $2.60. This recent price analysis indicates a precarious situation for TON, with the need for a strong resurgence in price to avoid further losses for investors. The asset’s price briefly rallied above the $4.70 mark on September 6, but it remains to be seen if this uptrend will be sustained.

The recent events surrounding Pavel Durov and the negative sentiment in the market have caused Toncoin’s price to plummet, leaving the majority of investors at a loss. The on-chain metrics further suggest that TON may face additional challenges in the coming days, making it crucial for the cryptocurrency to regain its support levels to prevent further decline. Investors should closely monitor the price movements of Toncoin and stay informed about any developments that may impact its value in the future.

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