Toncoin (TON) faced a sharp downturn on August 24, plunging 27% to $5 following the shocking arrest of Telegram creator Pavel Durov at a French airport. This dramatic drop has seen Toncoin fall out of the top 10 cryptocurrencies, with Cardano closely trailing at the 11th spot. Despite this setback, intriguing whale activity hints that the cryptocurrency might be gearing up for a rebound—possibly driven by an anticipated catalyst.
Pavel Durov’s Arrest – A Major Setback For TON
The arrest of Pavel Durov has sent ripples through the cryptocurrency market. High-profile figures, including Elon Musk and several politicians, have rallied for Durov’s release, but their efforts have so far been unsuccessful. The situation worsened when Durov’s detention was extended by another 96 days. The UAE, his home country, has urged France to expedite consular services, citing Durov’s Emirati citizenship.
Recent reports from Sputnik International highlight that Durov faces 12 criminal charges. This has weighed heavily on Toncoin, which saw its price drop 4.4% in the last 24 hours to $5.38. Despite this, a closer look at whale behavior suggests that some investors may be betting on a turnaround.
Whale Behavior But A Bullish Signal?
Data from Santiment reveals significant whale activity in Toncoin. Whales purchased between $3.29 million to $3.48 million worth of TON during its recent dip. This was followed by a steady accumulation trend from August 20 to August 25, where whales bought approximately $4.07 million to $3.98 million worth of the asset. Such large-scale buying could imply insider knowledge or strong belief in a future rebound.
On August 26, whale transactions spiked, marking the highest activity since June 2, a period which preceded a notable 32% price increase. Additionally, the surge in daily active addresses (DAA) and transaction counts on August 26 suggests heightened investor activity. This uptick is typically a bullish signal, as increased network activity often leads to higher volatility and potential price recovery.
Market Value to Realized Value (MVRV) Ratios – A Buying Opportunity?
On August 26, Toncoin’s 30-day and 365-day Market Value to Realized Value (MVRV) ratios entered the oversold zone, a classic indicator of a potential buying opportunity. The 365-day MVRV dropped to nearly -10%, a level reminiscent of August 5’s broader market crash. Historically, such low MVRV levels have preceded significant price rebounds, with Toncoin previously reaching an all-time high within 10 days of similar conditions.
Also Read: Bitcoin Breaks $65K Barrier – What’s Next For Toncoin At $5 and Notcoin’s $0.00957 Support?
In addition to whale activity, the launch of Durov’s new project, Dogs (DOGS), on the Ton blockchain has stirred considerable excitement. The DOGS airdrop attracted significant attention, causing network congestion and delays. This surge in activity reflects growing interest in Toncoin and its associated projects.
With Pavel Durov’s potential release on the horizon and heightened investor interest, Toncoin might be on the cusp of a significant rebound. As the situation unfolds, all eyes will be on how these factors will influence Toncoin’s price trajectory in the coming weeks.
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.
About The Author
