Trusted

Toncoin (TON) Price Drop Results in 24% Supply Loss From Long-Term Holders

2 mins
Updated by Daria Krasnova
Join our Trading Community on Telegram

In Brief

  • Toncoin’s price lost its two-week-long uptrend and a shot at recovery, falling by 16% in three days.
  • One of the biggest reasons behind this drawdown was the long-term holders, whose sales spiked.
  • This increase in selling led to about 647 million TON worth over $3.57 billion losing their profitability.
  • promo

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

Toncoin Age Consumed.
Toncoin Age Consumed. Source: Santiment

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.

Toncoin GIOM.
Toncoin GIOM. Source: IntoTheBlock

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?

Toncoin Price Analysis.
Toncoin Price Analysis. Source: TradingView

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.

Top crypto projects in the US | October 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
3Commas 3Commas Explore
Uphold Uphold Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
3Commas 3Commas Explore
Uphold Uphold Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2t314.png
Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
READ FULL BIO
Sponsored
Sponsored