Investors Sell Toncoin After Price Drop

Toncoin ($TON) has seen a significant decrease in its price following the recent detention of Telegram’s founder, Pavel Durov, in France. Last week, $TON, which had demonstrated solid performance against Bitcoin and had visibly recovered, plummeted below $6. The decline has been primarily attributed to long-term investors who have started offloading their $TON holdings, resulting in substantial devaluation for those who purchased at higher prices.

Why Are Toncoin Investors Selling?

The recent events have led to a clear price decline for Toncoin. Long-term investors, who previously retained their holdings, started selling off their $TON assets after Pavel Durov’s detention. This shift in investor sentiment has had a noticeable impact on the market.

What Caused the Price Drop?

The importance of long-term investors in the market becomes evident when we consider their resistance during bearish phases. The sales by these investors are believed to be a major factor contributing to the price drop of $TON. Approximately 647 million $TON tokens, previously purchased, have now become unprofitable, with purchase prices ranging from $5.45 to $6.10, according to the Global In/Out of the Money indicator.

Key Takeaways for Investors

– Consider monitoring the price levels between $5.45 and $6.10 for potential buy-in opportunities.
– Evaluate market sentiment and news events, such as key figures’ legal issues, before making investment decisions.
– Be aware of the impact of long-term investors’ actions on the market, particularly during times of significant price changes.

The substantial portion of the Toncoin supply, estimated at over $3.57 billion, becoming unprofitable highlights the extensive impact of the recent sales. This sharp decline has caused individual investors to perceive a downward trend and has led to increased scrutiny and questioning of the market’s direction.

How Much Will $TON Be?

Over the past three days, Toncoin’s price has dropped by 16.5% and is currently trading at $5.61. The downward trend line has also been broken. Presently, $TON is trading above the support level of $5.49 and may experience a recovery, depending on the market’s support. The current scenario suggests potential consolidation between $5.49 and $6.04.

If upward momentum reappears, $TON could surpass the resistance level of $6.04, indicating a partial recovery from the recent 16% drop and potentially invalidating the downward trend.