Toncoin (TON) Price Volatility: Should Traders Worry?
The cryptocurrency market experienced significant volatility following the arrest of Pavel Durov in August 2024. This event triggered a sell-off in Toncoin (TON), with over 890,000 TON sold. The situation worsened recently with the transfer of over 240,000 TON to exchanges in the past week.
Toncoin's Price Decline and Selling Pressure
This influx of TON into exchanges has increased selling pressure, causing a noticeable dip in price. While this suggests potential for further declines, it could also represent a buying opportunity for investors anticipating a market recovery. The situation highlights the impact of geopolitical events on cryptocurrency markets, especially those closely tied to high-profile individuals.
Open Interest Delta Suggests Potential Reversal
Despite the sell-off, a closer look at the data provides a more nuanced perspective. Toncoin's weekly Open Interest (OI) Delta shows increased volatility coupled with growing OI. Historically, this pattern has often preceded price surges. A similar increase in OI in mid-2024 correlated with a sharp price rise for TON. Recent increases on January 25th, 2025, suggest a similar potential for a bullish trend.
The correlation between OI changes and price action should be monitored for insights into short-term market dynamics. Factors such as liquidity and position flow will be crucial in determining if this trend translates into higher prices.
Key Support Zone and Technical Indicators
Toncoin's price is approaching a key support zone at $4.80. The price repeatedly tested and bounced off this level in the past, suggesting resilience. This proximity to the support area hints at a potential price bounce. Furthermore, the convergence of the MACD suggests upcoming positive momentum.
If history repeats itself, this could lead to a price increase, presenting a buying opportunity. However, it's important to note that past performance is not indicative of future results.
Network Activity Remains Strong
Despite price fluctuations, the number of unique TON addresses continued to grow steadily, increasing by over 32% from 105 million on October 22nd to 139 million by January 22nd. This sustained growth indicates heightened activity and interest in the TON network, potentially bolstering market confidence and supporting a bullish outlook.
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