The recent performance of Toncoin [TON] serves as a reminder of the importance of exercising caution in the volatile cryptocurrency market. Over the past month, Toncoin has encountered a significant downturn, witnessing a 16.03% decrease overall, including a notable 10.43% drop in the past week.
Impact of Founder’s Statement on Toncoin
Following Pavel Durov’s arrest by authorities in Paris on the 25th of August, the founder of the Telegram-based cryptocurrency made a public statement refuting claims that Telegram fosters an “anarchic paradise.”
Durov emphasized that the platform’s core mission is to advocate for good and protect people’s fundamental rights, particularly in regions where these rights are under threat.
The release of this statement after his arrest prompted a 6.62% surge in TON’s price within 24 hours, partially offsetting the 20% decline sparked by news of his detention, as reported by CryptoCrypto.
Beyond the immediate price impact, Durov’s statement bolstered market confidence, as evidenced by metrics such as Open Interest (OI) and liquidation volumes.
Coinglass reported a 7.57% increase in Open Interest, indicating the entry of fresh capital into the market, potentially supporting the positive price trend. At the time of reporting, TON was trading at $4.88.
The platform also observed liquidation of over $646.98k in short positions due to margin requirement challenges amid rising prices, out of a total of more than $872.41k. This significant liquidation highlighted the positive sentiment prevailing post-Durov’s statement.
However, while retail investors may push TON’s price higher with ongoing developments, analysis by CryptoCrypto suggests that a sustained uptrend is not yet guaranteed.
Whales and Market Participation
Despite recent market movements, significant TON holders—commonly referred to as whales—have remained relatively inactive in the market.
Analysis from IntoTheBlock revealed a noticeable decrease in the volume of large transactions by holders, dropping from 1.79k to 1.03k. This decline in whale activity reflects a lack of confidence in TON’s current market trajectory among this influential group.
Furthermore, data from IntoTheBlock indicates a low overall number of active market participants, including Active Addresses and New Addresses, suggesting a general reluctance to engage with TON at the moment.
This lack of involvement from key players could potentially disrupt the market’s dynamics and impede the anticipated rally desired by retail traders.
Technical Analysis and Future Targets for TON
Toncoin has recently demonstrated a significant shift by surpassing the neckline (support) of a previously identified bearish head and shoulders pattern.
If the $4.8178 level solidifies as support once again, TON could be poised for an upward move, with the next target projected at $5.0832 based on Fibonacci retracement levels.
On the other hand, failure to maintain this support level could result in a continuation of the recent downward trend, potentially leading TON towards support levels at $4.5154 or $4.3577, where a notable buying interest may be present.