Toncoin (TON) has experienced negative price movements and a bearish sentiment among investors due to a decrease in value, reaching a low point of $1.91, and exhibiting a bearish trend on a monthly timeframe. The market sentiment indicator currently indicates a bearish trend, while the Fear & Greed index is neutral at 49. Key resistance is at $2.080, while TON trades below the 50-day and 200-day Simple Moving Average, signaling further potential price declines. The Relative Strength Index momentum oscillator is pointing downwards and, if it drops further below 30, it may ignite high selling pressure and further price decline.
This article originally appeared on www.newsbtc.com
Toncoin, also known as TON, has been on a downward trend recently as bears maintain control over the cryptocurrency market. Over the past few weeks, TON has lost nearly 50% of its value, dropping from around $0.20 to its current price of $0.11.
This decline is in line with the broader cryptocurrency market, which has also been experiencing a significant sell-off in recent weeks. Bitcoin, the largest cryptocurrency by market capitalization, has dropped from nearly $65,000 in mid-April to around $36,000 at the time of writing.
The reasons behind this market correction are varied, but they include regulatory concerns in China, environmental concerns around the energy consumption required for cryptocurrency mining, and a general sense of market exhaustion after a prolonged period of bullish sentiment.
In the case of TON, however, there are some additional factors at play. One of these is the failure of the Telegram Open Network (TON) project. TON was originally developed by Russian social media company Telegram, and it was intended to be a blockchain-based platform for hosting decentralized applications (dApps) and smart contracts.
However, in 2020, the project was abandoned after a lengthy legal battle with the US Securities and Exchange Commission (SEC). The SEC argued that TON’s initial coin offering (ICO) was an unregistered securities offering, and therefore illegal under US law.
Telegram ultimately settled with the SEC, agreeing to pay a $18.5 million fine and return over $1.2 billion to investors. This effectively killed the TON project, as Telegram was unable to proceed with its plans for the blockchain and associated cryptocurrency.
Since the failure of the TON project, the value of TON has steadily declined. While the cryptocurrency was briefly listed on some exchanges, it has since been delisted from many of them, further reducing its liquidity and trading volume.
It remains to be seen whether TON will recover from its current downtrend, or whether it will continue to decline in value. As with many cryptocurrencies, its price is subject to a range of internal and external factors, and it is difficult to predict with any certainty which way it will move in the future.
Overall, investors who are considering buying TON or any other cryptocurrency should be aware of the risks involved, including volatility, regulatory uncertainty, and market cycles. By conducting thorough research and diversifying their portfolios, they can better manage these risks and potentially achieve long-term success in the cryptocurrency market.
Source link
