TON, the native token of the Toncoin blockchain network, is under tremendous selling pressure. Although it has maintained its position in the top ten, the recent decline has cast doubt and widened cracks in an otherwise strong uptrend.
TON price drops, liquidity provider sells
according to CoinMarketCapThe price of TON dropped by about 18% in the past trading week, but remained stable on the last day. However, the coin has remained stable over the past six months. A quick look at the daily chart of TON shows that it has risen by about 200% and is maintaining an upward trend.
If the August 24 decline continues, gold prices could fall and retest the immediate support level representing the July lows at around $4.8. However, further losses could trigger panic selling among gold holders, fueling another round of selling pressure. In turn, this would confirm the losses incurred by gold prices over the weekend.
On August 26, Lookonchain analysts male One major liquidity provider exited the market, selling over 350,000 tons worth $1.98 million. Interestingly, the provider chose to sell wholesale at $5.57.
Hours later, prices turned green, starting to decline, as seen on the daily chart. The situation could get worse in the coming hours or days if “small” investors follow this trend.
Typically, when large token holders, in this case the liquidity provider, choose to liquidate their business, it creates a domino effect. Since these entities are presumably more informed than retail traders, this can be interpreted as indicating that their market outlook is bearish.
Therefore, following their lead and securing investment at current prices may mean exiting when liquidity is high and profits are appropriate.
Telegram’s Pavel Durov Arrested, What’s Next for Toncoin?
At the moment, it remains unclear whether TON holders will continue to sell, following the liquidity provider’s lead. However, it is clear that the selling pressure on August 24 could shape the short- to medium-term trend. It will be a particularly turbulent time for TON holders if the decline continues, dropping below $4.8.
The reasons for this scandal could be the longer detention of Pavel Durov, the CEO of Telegram. Last weekend, Durov, whose messaging app is closely linked to The Open Network, was arrested in Paris, France.
Rumors suggest that Durov’s arrest revolves around the Telegram app, whose messages are encrypted. Authorities allege that the messaging app, which Durov heads, failed to take adequate measures to police messages. Authorities also allege that Telegram failed to cooperate with law enforcement to crack down on suspected criminals.
in statementTelegram said Durov had “nothing to hide.” The team also said the messaging app was committed to ensuring standard moderation practices while complying with EU laws.
Featured image from Wikimedia Commons, chart from TradingView
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