August 27 Toncoin Price Analysis
Toncoin suffered a significant drop on August 24, following the arrest of Telegram’s creator, Pavel Durov, at a French airport. The cryptocurrency’s price plummeted by 27%, settling at $5, and continues to struggle in its recovery. This decline pushed Toncoin out of the top 10 rankings, leaving it vying for the 11th position alongside Cardano, which is inching closer to the $1 mark. Despite this downturn, Toncoin whales have been actively accumulating large quantities of the asset, possibly in anticipation of Durov’s release, which could serve as a major catalyst for a price surge.
Ongoing Efforts for Pavel Durov’s Release
In response to Durov’s detention, several high-profile figures, including tech mogul Elon Musk and numerous politicians, have made attempts to secure his release. However, these efforts have yet to yield results, and just yesterday, Durov’s detention was extended by another 96 days.
The United Arab Emirates (UAE), where Durov holds citizenship, has now joined the fray, urging France to release him. The UAE is reportedly closely monitoring the situation and has requested that France provide Durov with all necessary consular services as a matter of urgency. According to a post by Sputnik International on X, Durov is facing 12 criminal charges, complicating the situation further.
Toncoin’s price has dipped 7.8% in the past 24 hours, trading at $5.38, yet whale activity indicates that large holders are positioning themselves for a possible reversal, potentially tied to Durov’s eventual release.
Whale Activity Suggests Strategic Accumulation
Data from Santiment reveals that whales seized the opportunity to buy Toncoin at its lowest point following the price crash. The data indicates that whales purchased between $3.29M and $3.48M worth of TON, while showing a steady accumulation from August 20 to August 25. During this period, these whales sold off between $4.07M and $3.98M worth of the asset, suggesting they might possess insider information fueling their strategic buying.
Notably, on August 26, there was a significant spike in whale transactions, the largest since June 2, which previously led to a 32% price increase and a new all-time high for Toncoin.
On the same day, Toncoin’s daily active addresses (DAA) and transaction counts surged, signaling increased investor activity. This uptick in network activity is a bullish indicator, suggesting heightened volatility during a potential recovery.
Additionally, both the 30-day and 365-day Market Value to Realized Value (MVRV) ratios for Toncoin entered oversold territory on August 26. The 365-day MVRV ratio nearly hit -10%, a level last seen during the broader market crash on August 5. Historically, such low MVRV levels have preceded price rebounds, with Toncoin reaching an all-time high within 9 to 10 days after similar occurrences.
Coupled with whale activity, which may be anticipating Durov’s release, the launch of “Dogs (DOGS),” another Durov-led project on the Ton blockchain, is also noteworthy. The DOGS airdrop, one of the largest events on the network since Notcoin, attracted significant attention and led to a surge in transactions. This surge nearly overwhelmed the network, causing delays in processing times.
The combination of these factors points to a growing interest in Toncoin and its associated projects, suggesting a possible influence on the cryptocurrency’s price trajectory in the near future.
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