More TON price drop on cards?

TL;DR

Toncoin (TON) experienced a sharp decline from its June high, currently trading 40% lower amid negative news, leaving almost 80% of its investors with losses. The chain’s metrics suggest that the asset’s price may fall further in the near future.

TON investors take a hit

Toncoin (TON) experienced a real bullish run at the start of 2024, with its price rising to a new all-time high of nearly $8.20 in mid-June. However, the asset lost momentum towards the end of August and is currently trading around $4.80, or 40% off the high seen earlier this summer.

TON Price, Source: CoinGecko

The price started to fall after the arrest of Pavel Durov. We recall that the founder and CEO of Telegram was arrested in France on accusations that the messaging application was used for illicit activities, such as drug trafficking, fraud and child sexual abuse.

Toncoin (TON) is somewhat related to Telegram as it is the native cryptocurrency of The Open Network, a blockchain originally developed by the messaging app.

As expected, the fall in TON negatively affected investors in the asset. Data from IntoTheBlock shows that nearly 80% of holders are currently sitting on paper losses, while only 9.3% are in the green.

The only cryptocurrency in the top 15 club with a higher proportion of underwater investors is Cardano (ADA). Almost 85% of token holders are in the red right now.

The correction could continue

An important metric that suggests the price of TON could be on the verge of a further drop is the on-chain signal Large Transactions, which is down 0.46% daily. It is a momentum indicator that shows the change in the number of transactions above $100,000.

Earlier this week, popular crypto analyst Ali Martinez claimed that TON needs to recover the $4.70 support level “soon” to avoid a drop to $2.60. We remember that the price of the asset jumped above the mentioned mark on September 6.

#Toncoin it needs to recover the $4.70 support level soon. yes $TON it doesn’t, a 45% correction to $2.60 could be likely. pic.twitter.com/Jv0V47sXjQ

— Ali (@ali_charts) September 4, 2024

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