As an analyst with over two decades of experience in the volatile world of digital currencies, I have seen my fair share of market turbulence and unexpected turns. The recent downward trend of TON, the native currency of Toncoin, is no exception. Despite its consistent spot in the top 10, the current selling pressure has certainly left cracks in an otherwise solid uptrend.
In simpler terms, the digital coin known as TON, which is used on the Toncoin blockchain, is experiencing significant downward pressure due to a lot of sellers. Although it still ranks among the top 10 cryptocurrencies, the recent drop has caused uncertainty and amplified potential weaknesses in what had previously been a strong upward trend.
TON Is Down, Liquidity Provider Sells
As reported by CoinMarketCap, TON has experienced a significant drop of approximately 18% in the recent trading week. However, it has remained steady on its last day. Interestingly, over the past six months, TON has shown strength, demonstrating a growth of nearly 200%. A quick look at the TON daily chart reveals that it continues to follow an upward trajectory.
If August 24’s losses continue, TON may drop and revisit its immediate support level, which was last seen at approximately $4.8 in July. This decline could cause anxiety among holders, potentially sparking a new wave of selling. As a result, this increased selling activity could validate the weekend’s losses.
On August 26th, it was observed by Lookonchain analysts that a significant market player (liquidity provider) withdrew from the market, offloading approximately 350,000 TON valued at around $1.98 million. What’s intriguing is that this LP decided to sell all their holdings in one go at a price of $5.57 per TON.
In the time that followed, the prices started to dip, moving downwards as shown on the day’s graph. If smaller investors continue to act similarly, the situation might deteriorate over the next few hours or days.
Normally, when significant stakeholders or liquidity providers decide to cash out, it often triggers a chain reaction, much like toppling dominos. Given that these parties are often considered better-informed than individual investors, this action might suggest that they have a pessimistic view of the market.
Consequently, by adhering to their plan and buying now at these prices might suggest that it’s time to sell when the market is liquid and the returns are satisfactory.
Pavel Durov Of Telegram Arrested, What’s Next For Toncoin?
For now, it’s uncertain if TON holders will keep selling, mirroring the actions of liquidity providers. But one thing is certain: the selling spree of August 24 could influence the trend over the short to medium term. This period may be particularly volatile for TON holders if bears intensify and push prices below $4.8.
If Pavel Durov, the CEO of Telegram, remains in custody for an extended period, it will activate this response. It’s worth mentioning that over the weekend, Durov, whose messaging app is associated with the open-source network The Open Network, was taken into custody in Paris, France.
It’s being rumored that Durov’s arrest is connected to Telegram, a messaging platform whose messages are encrypted. The authorities assert that the app, under Durov’s leadership, did not take adequate steps to regulate content and refused to collaborate with law enforcement in order to eliminate suspected criminal activity on the platform.
Telegram declared that Durov has no secrets to conceal. Moreover, they emphasized their dedication to upholding common moderation procedures while adhering to EU regulations regarding the operation of their messaging platform.
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2024-08-27 05:12