Investors are rapidly selling Toncoin (TON) due to a significant price drop caused by the detention of Telegram’s founder, Pavel Durov, in France. TON had been performing well against Bitcoin and had shown signs of recovery, but it plummeted below $6. This decline is primarily driven by long-term investors selling off their TON holdings, resulting in substantial devaluation for those who purchased at higher prices.
The recent events surrounding Pavel Durov’s detention have led to a clear decline in Toncoin’s price. Previously loyal long-term investors have now started offloading their TON assets, leading to a noticeable impact on the market.
The role of long-term investors in the market becomes apparent when considering their resistance during bearish phases. The sales by these investors are seen as a major factor contributing to the price drop of TON. About 647 million TON tokens purchased at prices ranging from $5.45 to $6.10 have become unprofitable, according to the Global In/Out of the Money indicator.
Investors should consider monitoring the price levels between $5.45 and $6.10 for potential buy-in opportunities. It is crucial to evaluate market sentiment and news events, such as legal issues involving key figures like Pavel Durov, before making investment decisions. Additionally, investors need to be aware of the impact of long-term investors’ actions on the market, especially during 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.
Currently, Toncoin’s price has dropped by 16.5% over the past three days and is trading at $5.61. The downward trend line has been broken, and TON is trading above the support level of $5.49. Depending on the market’s support, there may be a potential recovery, with a consolidation expected between $5.49 and $6.04.
If upward momentum returns, TON could surpass the resistance level of $6.04, indicating a partial recovery from the recent 16% drop and potentially invalidating the downward trend.