TL;DR
Toncoin (TON) saw a sharp drop from its June high, currently trading 40% lower amid negative news, leaving nearly 80% of its investors at a loss.
On-chain metrics suggest that the asset’s price may tumble even more in the near future.
TON Investors Take a Blow
Toncoin (TON) experienced a real bull run at the start of 2024, with its price rising to a new all-time high of almost $8.20 in mid-June. However, the asset lost momentum towards the end of August and currently trades at around $4.80, or 40% less than the peak observed at the beginning of the summer.
TON Price, Source: CoinGecko
The price started declining after the arrest of Pavel Durov. Recall that the founder and CEO of Telegram was detained in France over accusations that the messaging app was used for illicit activity, such as drug trafficking, fraud, and child sexual abuse.
Toncoin (TON) is somewhat related to Telegram since it is the native cryptocurrency of The Open Network – a blockchain originally developed by the messaging application.
Somewhat expectedly , TON’s plunge negatively affected investors of the asset. IntoTheBlock data shows that nearly 80% of the holders are currently sitting on paper losses, whereas only 9.3% are in the green.
The only cryptocurrency from the top 15 club with a higher ratio of investors underwater is Cardano (ADA). Almost 85% of the token’s holders are in the red as of the moment.
The Correction Might Continue
One important metric suggesting that TON’s price could be on the verge of a further decline is the on-chain signal Large Transactions, which is down 0.46% daily. It is a momentum indicator showing the change in the number of transactions greater than $100,000.
Earlier this week, the popular crypto analyst Ali Martinez claimed that TON needs to reclaim the $4.70 support level “soon” to prevent a crash to as low as $2.60. Recall that the asset’s price jumped above the aforementioned mark on September 6.
#Toncoin needs to reclaim the $4.70 support level soon. If $TON fails to do so, a 45% correction down to $2.60 could be likely. pic.twitter.com/Jv0V47sXjQ
— Ali (@ali_charts) September 4, 2024
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