Key Insights
- Toncoin broke through major support levels at $1.79 and $1.78 and is indicating a bearish tilt over the short term.
- The recent surge in trading volume indicates that large holders or institutions may be behind the recent selloff.
- Geopolitical news around Telegram bonds in Russia has also created extra pressure on the ecosystem.
The crypto market tends to move quickly. Recently, Toncoin fell by over 4% in just 24 hours.
This decline pushed the price down to $1.76 as selling pressure grew. While other parts of the market stayed stable, this specific coin struggled to keep its footing.
It even briefly touched a high of $1.89 before the trend reversed completely.
Related: The Open Network (TON) Blockchain Explained
Toncoin Price Drops Through Critical Technical Levels
The technical charts are showing a story that many traders are watching. The Toncoin price recently broke two major support levels at $1.79 and $1.78.
This decline indicated that there was a change in market mood. This was not a quiet move either. Trading volume spiked during the break, and over 2.14 million tokens changed hands.
This amount is well above the usual seven-day average, and high volume during a price drop usually means that big players are involved. It could indicate that institutional investors or large holders decided to reduce their positions.
The RSI also shows that the asset is trading on neutral ground after a bearish crossover on 6 January.
Traders are now keeping an eye on the $1.76 level. If this does not hold, the price could slip into a lower demand zone between $1.765 and $1.770.
In sum, without more buyers stepping in, the downward pressure might continue.
Geopolitical Pressure and the Telegram Connection
Events outside the crypto world often tend to ripple through digital assets. A recent report from the Financial Times pointed out troubles for Telegram. Around $500 million in Telegram bonds issued in Russia are currently frozen.
This happened because of Western sanctions related to the conflict in Ukraine.
While Toncoin is now an open-source project, its history is tied to the messaging app, and Telegram still uses the blockchain for many of its features.
This connection means that bad news for the company can affect investor confidence in the token. Even if the bond freeze does not directly touch the blockchain, the market reacts to the perceived risk.
There is also the matter of financial transparency. Recent disclosures revealed that Telegram sold over $450 million in Toncoin late last year.
The company claims these sales help decentralise the network, and they also want to cap their holdings at 10% of the total supply. However, many in the community worry about the effect of such large sales on the market price.
New Infrastructure Fails to Stop the Slide
The price drop is happening despite some very positive updates. Pavel Durov, the founder of Telegram, recently launched CoCoon. This is a decentralised AI compute system built on the network.
It allows users to share GPU power for AI tasks and earn rewards.
Additionally, xStocks recently launched on the TON Wallet. This allows millions of users to access tokenised US equities directly inside the app. In other words, people can now hold versions of stocks like Apple or Amazon on the blockchain.
These are major steps for real-world asset adoption, and usually, such news would drive the price up.
However, technical factors and macro fears are currently winning the battle. The market seems more focused on the “crypto accounting” side of things and Telegram reported a net loss recently due to the falling value of its token holdings.
Even though their revenue from premium subscriptions and ads is rising, the token volatility is still creating a difficult financial picture for the market as a whole.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
