Toncoin (TON) has recently experienced a significant drop in price, trading 40% lower than its June high. This downward trend has left nearly 80% of its investors facing losses, reflecting a stark contrast to the bullish run the cryptocurrency had earlier in 2024.
Impact of Negative News
The decline in Toncoin’s price can be attributed to negative news surrounding its parent company, Telegram. The arrest of Pavel Durov, founder and CEO of Telegram, on charges related to illicit activities conducted through the messaging app, has had a direct impact on Toncoin’s valuation. As Toncoin is the native cryptocurrency of The Open Network, a blockchain developed by Telegram, the association with the company’s legal troubles has eroded investor confidence in the digital asset.
On-chain metrics indicate that Toncoin’s price may continue to decrease in the near future. Data from IntoTheBlock shows that a significant majority of Toncoin holders are currently facing losses, with only a small percentage of investors seeing positive returns on their investment. The decline in Large Transactions, a key on-chain signal measuring the number of transactions exceeding $100,000, further suggests that Toncoin’s price could be headed for further decline.
Market analysts have also weighed in on the future trajectory of Toncoin’s price. Ali Martinez, a popular crypto analyst, has emphasized the importance of Toncoin reclaiming the $4.70 support level to avoid a potential crash to as low as $2.60. Failure to maintain this support level could result in further losses for Toncoin investors.
The recent price drop in Toncoin reflects the volatile nature of the cryptocurrency market and the significant impact that external factors, such as negative news and on-chain metrics, can have on investor sentiment. As Toncoin continues to navigate through these challenges, it will be crucial for the cryptocurrency to rebuild investor confidence and regain momentum in order to stabilize its price and work towards sustainable growth in the future.
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