Toncoin Falls After UAE Denies Golden Visa Link

Key Takeaways:

• The UAE government denied any connection between TON staking and golden visa eligibility.
  
• TON price dropped nearly 6%, now testing crucial support at $2.80.
  
• Bearish momentum could push the token down to $2.38 or even $2.02.

Toncoin (TON), the native token of The Open Network, saw a sharp selloff on July 7 after the UAE government refuted claims that staking TON could qualify investors for the prestigious golden visa. The news sent shockwaves through the crypto market, slashing TON’s price from $3.05 to as low as $2.82 in intraday trading.

Golden Visa Claims Debunked by UAE Authorities

Controversy erupted after The Open Network promoted a program suggesting that staking $100,000 worth of TON for three years, along with a $35,000 fee, could make an investor eligible for the UAE’s golden visa. The claim gained significant traction after being reposted by Telegram CEO Pavel Durov, though he provided no direct comment.

However, the rally was short-lived. The Emirates News Agency released a joint statement from three major regulatory bodies — the Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority — firmly denying any connection between crypto staking and golden visa eligibility. Officials clarified that digital asset investments are regulated independently and do not factor into residency approvals.

TON Price Tests Key Support at $2.80

Following the clarification, TON price dropped nearly 6% from its 24-hour high. The token is currently hovering around $2.82, right above a crucial horizontal support level. Technical indicators suggest increasing downside pressure.

The Balance of Power (BoP) indicator reads -0.13, pointing to bearish dominance. Meanwhile, the MACD histogram continues to diverge negatively, indicating growing selling momentum. Unless a bounce occurs soon, TON may break below the $2.80 support.

Bearish Outlook: $2.38 and $2.02 in Sight

Chart analysis reveals TON trading within a descending triangle pattern — a bearish formation. A confirmed breakdown below $2.80 could accelerate losses toward the 1.618 Fibonacci level near $2.38. If selling intensifies, a deeper target at $2.02 (the 2.618 Fib level) becomes likely.

A bullish recovery would require a decisive move above the triangle’s upper resistance, which remains unbroken after several failed attempts.

Also Read: Toncoin Whale Strategy Revealed: 863M TON Accumulated as Supply Drains

Toncoin’s sharp price correction highlights the market’s sensitivity to regulatory headlines. With the UAE’s golden visa claims debunked and technical pressure mounting, investors should brace for potential downside ahead.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Sean Williams

I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!