Toncoin (TON) has recently experienced a significant price drop following the arrest of Telegram CEO Pavel Durov. However, there are signs that TON could be on the verge of a breakout and potential rally. Technical analysis suggests that TON is currently in a bullish descending price action pattern, indicating a possible upward trend. If TON breaks out of its consolidation zone and closes a 4-hour candle above the $5.30 level, it could potentially surge by 15% to reach $6.
On-chain metrics also show positive signs for TON. The number of wallets holding 100,000 to 1 million TON tokens has decreased, while wallets holding 1 million to 10 million tokens have increased significantly since Durov’s arrest. This suggests that whales (large investors) may see the current price decline as a buying opportunity.
Currently, TON is trading near $5.20, experiencing a slight 2% price drop in the last 24 hours. However, trading volume has increased by 25%, indicating greater participation from traders and investors. On the other hand, open interest has dropped by 2%, which may be a reflection of bearish market sentiment.
Overall, while TON has faced challenges recently, the potential for a bullish breakout and a 15% price surge is worth keeping an eye on. However, it’s important to consider the potential risks and market sentiment before making any investment decisions.