The Downfall of Toncoin (TON) and the Concerning On-Chain Metrics

The Downfall of Toncoin (TON) and the Concerning On-Chain Metrics

Toncoin (TON) was once riding high on a bull run at the beginning of 2024, reaching an impressive all-time high of nearly $8.20 in mid-June. However, the tides quickly turned towards the end of August, leading to a 40% decrease in price, settling around $4.80. The downfall can be attributed to negative news surrounding Pavel Durov, the founder and CEO of Telegram, which ultimately impacted Toncoin as it is closely related to the messaging app.

Investors Take a Hit

The repercussions of Durov’s arrest have been felt by Toncoin investors, with approximately 80% of holders currently facing losses while only 9.30% are in profit. This staggering statistic highlights the severity of the situation, as Toncoin struggles to regain its previous momentum. In comparison to other cryptocurrencies, such as Cardano (ADA), Toncoin’s investor base experiencing losses is significantly higher, painting a grim picture for the asset.

On-Chain Metrics Signal Further Decline

One of the concerning on-chain metrics for Toncoin is the Large Transactions indicator, which has seen a daily decline of 0.46%. This indicator tracks the volume of transactions exceeding $100,000, providing insight into the underlying momentum of the asset. Additionally, crypto analyst Ali Martinez warns that Toncoin must reclaim the $4.70 support level promptly to avoid a potential crash to as low as $2.60. With the current price hovering around the crucial support level, the future remains uncertain for Toncoin.

The once-promising Toncoin (TON) has faced a significant setback following negative news and on-chain metrics pointing towards further price decline. As investors navigate through the turbulent waters of the cryptocurrency market, caution and strategic decision-making are paramount to weathering the storm. The fate of Toncoin hangs in the balance, with investors anxiously awaiting signs of a potential recovery amidst the challenging landscape of the digital asset space.

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