Will Toncoin Price Crash Below $5 Shake Telegram’s Revenue Streams?

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As a seasoned crypto investor with a knack for spotting trends and understanding market dynamics, I find myself watching the Toncoin price with bated breath. With 40% of Telegram’s revenue tied to the crypto world, it’s like holding a piece of Telegram in my digital wallet. The recent bearish sentiment, fueled by the arrest of Pavel Durov, has sent shockwaves through the market, and I can feel the selling pressure mounting.

In the face of broader market volatility, I observed a modest increase of 0.32% in the Toncoin price, reaching $5.39 during Saturday’s trading. Currently, the consolidation pattern beneath the 200-day Exponential Moving Average suggests that bears are leading the market momentum. With growing selling pressure, there’s a potential for the Toncoin price to drop below the $5 mark.

Toncoin Price Volatility May Impact Telegram as 40% of Revenue Ties to Crypto

The financial snapshot of Telegram for 2023 reveals significant insights into the company’s operations and its heavy involvement in the crypto space. DefiIgnas, the co-founder of DeFi Creator Studio PinkBrains, highlighted that 40% of Telegram’s revenue comes from crypto-related sources.

In simple terms, the combined platform for crypto transactions and selling digital items such as usernames and virtual phone numbers serves as our primary income source. According to Financial Times, Telegram brought in an income of approximately $342.5 million in 2023, but ended up with a loss of around $108 million by the end of the year.

This suggests that the firm is finding it challenging to manage its revenue and operational costs due to the unpredictable nature of the cryptocurrency market. The tweet additionally emphasized Telegram’s financial statement, disclosing an excess of $400 Million in cryptocurrencies (specifically TON), over their cash reserves.

Consequently, since Telegram holds a substantial amount of cryptocurrencies, including Toncoin, the fluctuations in Toncoin’s price may have a considerable effect on Telegram.

Crazy 40% of Telegram’s revenue comes from crypto-related sources:

1. Combined Cryptocurrency Wallet: save, transfer, accept, and exchange cryptos

In total, Telegram generated $342.5M in revenue in 2023 but still ended the…

— Ignas | DeFi (@DefiIgnas) August 31, 2024

TON Price Set to Retest Multi-Month Support

Over the past seven days, the value of Toncoin has experienced significant downward pressure due to the arrest of Telegram’s founder, Pavel Durov. This bearish trend caused the asset to drop from $6.85 to $5.37, resulting in a 22% decrease in its value.

As a crypto investor, I’ve been closely observing the daily chart trends, and it seems the downward sloping line is leading our current correction. This trendline has been instilling a ‘sell-the-rallies’ mentality in the market. Given the continuous selling pressure, I foresee the TON price dipping by approximately 12%, potentially reaching $4.72. Interestingly, this level appears to be a strong horizontal support that has held firm since March 2024.

If sellers flip this crucial support to potential resistance, the Toncoin price could extend correction to $3.3.

Will Toncoin Price Crash Below $5 Shake Telegram’s Revenue Streams?

Instead, it’s significant to note that the $4.72 mark serves as a key gathering spot for buyers. A possible shift in direction could indicate a resurgence of buying power and a boost for buyers to surpass the upper resistance line.

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2024-08-31 21:10