The native currency of Toncoin, TON, is experiencing significant selling pressure, raising doubts and causing cracks in its previously strong uptrend despite remaining in the top 10 cryptocurrencies.
TON Faces Decline as Liquidity Provider Exits Market
Recent data from CoinMarketCap reveals TON has dropped by almost 18% over the past week, although it has shown stability in the last 24 hours and has been on an upward trajectory over the last six months, rising nearly 200%.
If the losses from August 24 persist, TON may test the immediate support level at around $4.8, potentially leading to panic selling and further downward pressure on the coin’s value.
On August 26, a large liquidity provider sold over 350,000 TON, valued at $1.98 million, at $5.57, subsequently causing a decline in prices. This move could potentially influence smaller holders to follow suit, amplifying the selling pressure.
Pavel Durov’s Arrest Raises Concerns for Toncoin’s Future
The arrest of Pavel Durov, CEO of Telegram, in Paris, France, has sparked uncertainty about the future of Toncoin. Rumors suggest that Durov’s detainment stems from allegations regarding Telegram’s encryption policies and lack of cooperation with law enforcement.
Should Durov remain in custody for an extended period, Toncoin holders may continue selling off their holdings, amplifying the market’s turmoil. The outcome of Durov’s situation could significantly impact Toncoin’s short to medium-term performance, especially if prices drop below $4.8.
Telegram has insisted that Durov has nothing to hide and is dedicated to upholding moderation standards while adhering to EU regulations, despite the ongoing legal challenges the messaging app faces.
