TON, the native cryptocurrency of the Toncoin network, is currently facing significant selling pressure. Despite holding its position within the top 10 cryptocurrencies, recent market movements have raised concerns and revealed vulnerabilities in what had been a solid upward trend.
TON’s Recent Performance and Selling Pressure
Data from CoinMarketCap shows that TON has dropped nearly 18% over the past week, although it has remained stable over the last 24 hours. Despite this, the coin has experienced a substantial increase of about 200% over the last six months. A closer look at TON’s daily chart indicates a potential risk of a further decline if the losses from August 24 extend. The immediate support level around $4.8, marked by July lows, could be tested, potentially leading to increased panic selling and further downward pressure.
On August 26, Lookonchain reported that a major liquidity provider (LP) sold over 350,000 TON, worth approximately $1.98 million, at $5.57 per coin. This bulk sale contributed to the recent price fluctuations. Since then, prices have shown some recovery but remain volatile, with the risk of further declines if smaller holders start following the LP’s lead.
Impact of Major Holder Sales
When large holders like liquidity providers decide to sell off their assets, it often triggers a domino effect in the market. This is because these entities are typically considered more knowledgeable about market conditions, and their actions can signal a bearish outlook. For smaller investors, mimicking such moves can be a strategy to exit the market while liquidity and profits are still favorable.
Pavel Durov’s Arrest and Its Implications for TON
The situation could become more complex if Pavel Durov, CEO of Telegram and a key figure linked to The Open Network (TON), faces prolonged detention. Durov was arrested in Paris over the weekend, with accusations related to Telegram’s encryption and alleged failure to cooperate with law enforcement regarding criminal activities. Telegram has stated that Durov has nothing to hide and reaffirmed its commitment to moderation practices and compliance with EU regulations.
The uncertainty surrounding Durov’s legal troubles might add to the current market volatility for TON, influencing short to medium-term trends and potentially exacerbating the selling pressure.
