TON, the native token of the Toncoin blockchain, is experiencing significant selling pressure. Despite remaining among the top 10 cryptocurrencies, recent heavy selling has raised concerns and disrupted its previous uptrend.
TON Faces Selling Pressure
According to CoinMarketCap, TON has dropped nearly 18% over the past week, though it has stabilized recently. However, it has shown strong performance over the past six months, with a nearly 200% increase and a sustained uptrend.
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If the decline from August 24 continues, TON may retest the support level around $4.8, marking the lows of July. Further losses could trigger panic selling among holders, amplifying the selling pressure and confirming the weekend losses.
On August 26, Lookonchain analysts reported that a major liquidity provider (LP) exited the market, selling over 350,000 TON, worth $1.98 million, at $5.57. Following this, prices have shown a minor increase but could face further declines if other smaller holders follow suit.
Typically, when significant token holders liquidate their positions, it creates a domino effect, signaling a potentially bearish market outlook. Retail investors often interpret this as a sign to exit while liquidity is high and profits are still reasonable.
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Pavel Durov’s Arrest and Its Impact on Toncoin
The future of TON holders may be influenced by recent events involving Pavel Durov, CEO of Telegram, who was arrested in Paris over the weekend. Telegram is closely linked to The Open Network and Durov’s arrest has raised concerns.
Authorities allege that Telegram, under Durov’s leadership, failed to implement adequate moderation measures and did not cooperate with law enforcement to address criminal activities. In response, Telegram stated that Durov has nothing to hide and reiterated its commitment to standard moderation practices and compliance with EU regulations.
Cre: bitcoinist.
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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