Toncoin (TON) has seen a significant decrease in its price following the recent detention of Telegram’s founder, Pavel Durov, in France. Last week, TON, which had demonstrated solid performance against Bitcoin and had visibly recovered, plummeted below $6. The decline has been primarily attributed to long-term investors who have started offloading their TON holdings, resulting in substantial devaluation for those who purchased at higher prices.
Why Are Toncoin Investors Selling?
The recent events have led to a clear price decline for Toncoin. Long-term investors, who previously retained their holdings, started selling off their TON assets after Pavel Durov’s detention. This shift in investor sentiment has had a noticeable impact on the market.
What Caused the Price Drop?
The importance of long-term investors in the market becomes evident when we consider their resistance during bearish phases. The sales by these investors are believed to be a major factor contributing to the price drop of TON. Approximately 647 million TON tokens, previously purchased, have now become unprofitable, with purchase prices ranging from $5.45 to $6.10, according to the Global In/Out of the Money indicator.
Key Takeaways for Investors
– Consider monitoring the price levels between $5.45 and $6.10 for potential buy-in opportunities.
– Evaluate market sentiment and news events, such as key figures’ legal issues, before making investment decisions.
– Be aware of the impact of long-term investors’ actions on the market, particularly during times of significant price changes.
The substantial portion of the Toncoin supply, estimated at over $3.57 billion, becoming unprofitable highlights the extensive impact of the recent sales. This sharp decline has caused individual investors to perceive a downward trend and has led to increased scrutiny and questioning of the market’s direction.
How Much Will TON Be?
Over the past three days, Toncoin’s price has dropped by 16.5% and is currently trading at $5.61. The downward trend line has also been broken. Presently, TON is trading above the support level of $5.49 and may experience a recovery, depending on the market’s support. The current scenario suggests potential consolidation between $5.49 and $6.04.
If upward momentum reappears, TON could surpass the resistance level of $6.04, indicating a partial recovery from the recent 16% drop and potentially invalidating the downward trend.
Read the full article here
