Toncoin (TON) had a promising start in 2024, reaching an all-time high of nearly $8.20 in mid-June. However, the cryptocurrency took a nosedive towards the end of August, currently trading at around $4.80, marking a 40% drop from its peak. The downfall began following the arrest of Pavel Durov, founder and CEO of Telegram, in France on charges related to illicit activities conducted through the messaging app.
Toncoin (TON) is closely tied to Telegram as the native cryptocurrency of The Open Network, a blockchain originally created by the messaging platform. The negative news surrounding Telegram and TON led to a significant blow for investors, with almost 80% currently facing losses. In comparison, only 9.3% of investors are in the green. Notably, Cardano (ADA) is the only cryptocurrency ranking higher in terms of the number of investors in the red, with almost 85% of holders facing losses.
One concerning metric indicating a potential further decline in TON’s price is the on-chain signal Large Transactions, which is decreasing by 0.46% daily. This indicator tracks the change in the number of transactions exceeding $100,000, providing insight into market momentum. Crypto analyst Ali Martinez has warned that TON needs to reclaim the $4.70 support level promptly to avoid a crash to as low as $2.60. The asset briefly crossed the $4.70 mark on September 6, highlighting the importance of this level in determining TON’s future price movement.
Toncoin (TON) has faced significant challenges in recent months, with its price plummeting following negative news surrounding Telegram and its founder. The high number of investors currently facing losses, combined with on-chain metrics indicating a potential further decline, raises concerns about the cryptocurrency’s future. As the market continues to react to external factors and internal developments, it remains to be seen whether TON can regain its lost momentum and recover from its current slump.