Toncoin’s (TON) price experienced a noticeable drop following news of Telegram’s founder’s detention. Last week, TON, which had shown strong performance against Bitcoin and had visibly recovered, fell below $6. This situation, linked to the decline by long-term investors, caused TON, worth billions of dollars, to drop to a level indicating losses for buyers.
Toncoin Investors Are Selling
Toncoin’s price experienced clear declines due to successive events. First, Telegram CEO Pavel Durov was detained in France, and second, long-term investors began to seriously sell their Toncoin holdings. This investor group, which generally continued to hold their TON, seems to have changed their views.
Generally, the importance of long-term investors in the market is clearly understood when considering their resistance to the prevailing bears. The sales made by this group are thought to be a major reason for the TON price drop.
Regarding the sales, it was seen that approximately 647 million TON tokens purchased in the past had lost their profitability position. According to the Global In/Out of the Money indicator, investors bought these tokens at price ranges between $5.45 and $6.10.
The fact that such a significant portion of the Toncoin supply, valued at over $3.57 billion, has lost its profitability shows the substantial impact of the recent sales. This dramatic decline in the market has led to a perception of a downward trend among individual investors and increased questioning.
How Much Will TON Be?
Toncoin’s price dropped by 16.5% over the past three days and is trading at $5.61 at the time of writing. After the drop, the upward trend line was also seen to break downward.
Currently trading above the support at $5.49, TON may move again for a recovery, which can happen proportionally to the support it receives from the market. The current outlook suggests a scenario where TON could consolidate below $6.04 and above $5.49.
On the other hand, in a scenario where upward momentum reappears, the resistance level of $6.04 could be surpassed, reflecting in the charts that Toncoin has regained part of the 16% drop and invalidated the downward outlook.
