What Is Happening to the Price of Toncoin?
The price of Toncoin has dropped to $5 and somewhere even to $0.30 in the last 24 hours. What is happening in the ecosystem and what will happen to the TON price?
Over the past 24 hours, there have been numerous developments in the TON ecosystem that have put pressure on the native cryptocurrency.
New investigations
Authorities in South Korea have initiated an investigation against Telegram amid the spread of deepfakes adult content. Seoul police are investigating Telegram's involvement in the distribution of illegal content. The authorities intend to cooperate with foreign colleagues, including France, where an investigation against Telegram is now actively underway. Investigations are also underway in India and Indonesia.
Amid this news, the TON token experienced increased volatility, falling 2.3% to $5.16. The trading volume also fell by 3.69%, indicating a lower interest from traders.
Whales woke up
Nevertheless, this drop has awakened the whales, the big investors, who have started buying up TON actively. Santiment data showed a sharp increase in the number of large investors' wallets over the last 24 hours. What can't be said about the smaller investors who have been actively selling off their holdings over the same period. The balances of these wallets have fallen dramatically.
1 billion transactions
Interestingly, TON Scan data shows that despite the recent major network outages and investigations of Telegram, the TON blockchain processed over 1 billion transactions. While Telegram continues to help popularize the blockchain, the latest achievement is likely due to the launch of the W5 wallet standard from TON Core and Tonkeeper.
Binance expands TON offering
One of the largest crypto exchanges, Binance, has announced the introduction of Simple Earn product for TON coin. Users can earn up to 5.9% APR on locked tokens if they manage to subscribe to Simple Earn between September 3 and September 23.
At the moment, the price reacted with a 1% increase, but soon traders panicked, though for a different reason.
TON's price has collapsed by 94%
TON dropped precipitously from $5.2 to about $0.3 on the popular aggregator, CoinMarketCap. The 94% collapse happened in a matter of minutes. This drastic price drop was not due to problems with the TON team, but solely to the aggregator itself.
Many exchanges, such as Binance, were also affected by this drop, as they probably used CoinMarketCap for their charts. The cause of the crash remains unclear. Some online users have speculated that the cause could be as much about the blockchain oracles as it is about the aggregator's API itself.
Some also report that the LDO and INJ coin charts also experienced a similar failure. At the time of writing, the bugs have been fixed.
TON price analysis
The coin has faced a lot of pressure after the arrest of Pavel Durov, and may continue its deep correction phase. Some analysts have noticed a head-and-shoulders pattern on the TON chart, which indicates the imminent start of a bearish trend for the coin.
The weekly chart of Toncoin shows a drop in value by almost 2%, while the monthly chart shows a 14% drop in value. The RSI index on the weekly chart of Toncoin is now in the oversold area. Selling pressure continues to dominate. The recent short-term bullish momentum indicating a possible reversal turned out to be false. The downward momentum is strengthening.
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DMI index and MACD position on the weekly chart also indicate a bearish trend for TON. Now the coin is trading below the key support of 200 MA and testing local demand levels. If the bearish pressure intensifies, TON could drop to the $4.60 support level. Conversely, if the coin manages to rise above the key 200 MA support in the near term, it could potentially rise 15% to $6. A positive outlook could well happen if whales continue to actively buy up TON, taking advantage of its recent decline.
TON behavior in September
September is historically a tough month for the entire cryptocurrency market. In general, it falls by 4.5% during this period. Additional pressure on prices can be exerted by macroeconomic data. On September 18, the Fed meeting will be held, the outcome of which may cause sharp volatility.
The current fall of TON may also be supported by general market sentiment and the fall of Bitcoin, which has pulled the other cryptocurrencies with it. Despite the negative news surrounding the TON ecosystem, the overall community sentiment remains positive. Some examples of this are the recent record transaction processing and whale activity.
Thus, TON may well show positive results in September, provided there are no negative events in the ecosystem.
Market participants have repeatedly witnessed that TON's dynamics differ from the general dynamics in the entire cryptocurrency market. Therefore, the coin has chances to show good results in September. The price can reach the $6 and $7 levels in the best case scenario. Especially if the whales continue the buying pressure. If the situation in the ecosystem does not change, the asset may face consolidation and get stuck in the $5-$6 range.
