Toncoin (TON) had seen a significant surge earlier in 2024, reaching an all-time high of nearly $8.20 in mid-June. However, the cryptocurrency’s momentum began to wane towards the end of August, with its current trading price at around $4.80, marking a 40% drop from its peak. This downward trend in TON’s price can be attributed to the arrest of Pavel Durov, founder and CEO of Telegram, the messaging app associated with the cryptocurrency.
Impact on TON Investors
The negative news surrounding Telegram and the subsequent decline in TON’s price have left a large portion of its investors at a loss. Data from IntoTheBlock reveals that approximately 80% of TON holders are currently facing paper losses, while only 9.3% are seeing gains. This puts TON in a similar situation to Cardano (ADA), with nearly 85% of ADA holders also experiencing losses. The looming threat of further price decline is indicated by the on-chain signal Large Transactions, which has been decreasing by 0.46% daily.
Analyst Predictions and Market Outlook
Crypto analyst Ali Martinez has warned that TON must reclaim the $4.70 support level quickly to avoid a potential crash to as low as $2.60. The cryptocurrency managed to surpass this critical support level on September 6, but the future remains uncertain. With on-chain metrics signaling a possible continuation of the downward trend, TON investors are facing a challenging time ahead. The correlation between Telegram’s legal issues and TON’s price movement highlights the interconnected nature of the cryptocurrency market and external events.
The recent plunge of Toncoin (TON) following negative news surrounding Telegram has had a substantial impact on its investors. The decline in price, coupled with on-chain metrics pointing towards further downside, has created a sense of uncertainty in the market. As TON struggles to regain lost ground, investors are left to navigate the turbulent waters of the cryptocurrency landscape, where external factors can have a significant influence on price movements.