Toncoin (TON) Price Prediction 2022: Will the Altcoin Recover From the Recent Slump?

Toncoin's [TON] recent history further underscores caution; the cryptocurrency has experienced a notable decline, dropping 16.03% over the past month

Toncoin’s [TON] recent price movements have been further impacted by the founder's statement following his arrest. After being detained by Paris authorities on August 25th, Pavel Durov, the founder of Telegram-based cryptocurrency Toncoin, made his first public statement following his arrest.

Durov’s statement, in which he refuted claims that Telegram serves as an “anarchic paradise,” triggered a 6.62% rise in TON’s price within 24 hours, partially reversing a 20% drop reported by AMBCrypto that occurred immediately following news of his detention.

This statement also appeared to bolster market confidence, with metrics like Open Interest (OI) and liquidation volumes indicating a positive shift in the market.

According to Coinglass, Open Interest, which represents the total unsettled contracts in derivatives like futures, increased by 7.57%. This growth in OI suggests fresh capital entering the market, potentially sustaining the bullish price trajectory. At press time, TON traded at $4.88.

Source: Coinglass

Coinglass also reported that over $646.98K of short positions were forcibly liquidated, unable to meet margin requirements amidst rising prices, from a total of more than $872.41K. This large-scale liquidation showed the positive market sentiment post-statement.

If this optimistic outlook persists, retail investors might drive TON’s price even higher as more developments unfold. However, further analysis by AMBCrypto suggests that a sustained rally for TON is not yet confirmed.

Whales remain on the sidelines despite recent market movements

Despite recent market movements, whales, who control significant amounts of TON, have not yet shown active participation in the market.

Analysis from IntoTheBlock revealed a noticeable downturn in the volume of large holder transactions, with figures declining from 1.79K to just 1.03K.

Such a reduction in large transactions, typically made by whales, suggests a lack of confidence among this influential group about the current trajectory of TON’s market recovery.

Source: IntoTheBlock

Furthermore, the overall number of active market participants —Active Addresses and New Addresses— remained low according to IntoTheBlock, reflecting a general hesitance to engage with TON. This lack of engagement could negatively affect the market’s dynamics.

Unless there is a noticeable uptick in activity from these key players, the anticipated rally that retail traders hope for may be distant for TON.

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