Toncoin (TON) investors have been hit hard recently as the cryptocurrency saw a significant drop from its peak in June. With the price plummeting by 40%, nearly 80% of investors are currently facing losses. This downward trend is concerning for those who had high hopes for the asset earlier in the year.
Connection to Telegram Scandal
The decline in Toncoin’s price can be directly linked to the arrest of Pavel Durov, the founder and CEO of Telegram. His detention in France on charges related to illicit activities conducted through the messaging app had a negative impact on TON, as it is the native cryptocurrency of The Open Network, originally developed by Telegram. This association with a controversial figure has undoubtedly shaken investor confidence in the asset.
One alarming sign for Toncoin’s future is the on-chain metric of Large Transactions, which has been decreasing by 0.46% daily. This indicator, which measures the change in the number of transactions exceeding $100,000, suggests that the price of TON may continue to drop in the near future. Additionally, crypto analyst Ali Martinez has warned that failing to reclaim the $4.70 support level could lead to a crash in price, potentially down to $2.60.
As Toncoin struggles to regain its footing in the market, investors are left wondering what lies ahead for the once-promising cryptocurrency. With the shadow of negative news and on-chain indicators pointing towards further losses, the road to recovery may be a challenging one for TON. It remains to be seen if the asset can overcome these obstacles and bounce back from its current downward trajectory. In the volatile world of cryptocurrency, only time will tell if Toncoin can rise from the ashes of its recent decline.
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