Toncoin’s (TON) price fell through the uptrend line over the weekend as the Telegram token witnessed selling.
Perpetrated by long-term holders, the drawdown led to billions of dollars worth of TON turning towards losses.
Key Toncoin Holders Offload
Toncoin’s price suffered from two simultaneous events. First, Telegram CEO Pavel Durov was arrested, and second, long-term holders began selling their Toncoin holdings at an accelerated rate. These investors, who typically hold their assets for extended periods, began offloading their Toncoin holdings.
Generally, long-term hodlers are considered to be the backbone of an asset as their resilience during bear markets minimizes decline. However, their surge in selling pressure significantly impacted the altcoin, driving prices downward.
Read more: 6 Best Toncoin (TON) Wallets in 2024
As a result of this selling spike, approximately 647 million TON tokens representing 24% of the entire circulating supply have lost their profitability. According to the Global In/Out of the Money indicator, these tokens were purchased at prices between $5.45 and $6.10.
Worth over $3.57 billion, the loss of profitability for such a significant portion of Toncoin’s supply underscores the impact of long-term holders’ actions on the broader market. The sudden shift has raised concerns among investors about the sustainability of Toncoin’s price, which has already lost its uptrend.
TON Price Prediction: Recovery May Be Afar
Toncoin’s price fell by nearly 16.5% in three days to trade at $5.59 at the time of writing. The drawdown resulted in the altcoin losing the uptrend and the support of the uptrend line.
Currently hovering above the support at $5.49, TON might continue its attempt to note a recovery. However, by the looks of it, the altcoin could end up consolidating under $6.04 and above $5.49.
Read more: What Are Telegram Bot Coins?
However, if the buying momentum trumps the selling pressure, the resistance of $6.04 could be breached. This could result in Toncoin’s price reclaiming a part of its 16% crash and invalidating the bearish thesis.
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