Toncoin price suffered a major crash on August 24 after Telegram creator Pavel Durov was arrested at an airport in France. TON price fell 27% to $5 and is still struggling to rise again. As a result, Toncoin has fallen out of the top 10 rankings and is now competing for the 11th spot, with Cardano price targets 1 USDclose behind. Meanwhile, TON whales have been showing interesting behavior as they have been accumulating the asset in large quantities. Could they be anticipating Pavel’s release, which could be a major catalyst for TON price?
Impact of Pavel Durov’s imprisonment on the Toncoin price
Several prominent figures, including tech titan Elon Musk and various politicians, have attempted to secure the release of Telegram founder Pavel Durov. However, their efforts have so far been unsuccessful, with Durov’s detention being extended for another 96 days yesterday.
In the latest attempt to free Durov, the United Arab Emirates (UAE) demanded that France release Durov because he is an Emirati citizen.
❗️ The United Arab Emirates demanded that France urgently grant its citizen Pavel Durov access to all necessary consular services, the country’s foreign ministry said in a statement.
“The United Arab Emirates is closely following the case of its citizen Pavel Durov, founder of Telegram, who was arrested by the… pic.twitter.com/hHkiYLcIF3
— Sputnik (@SputnikInt) 26 August 2024
According to Sputnik International X’s post, the United Arab Emirates is closely following the case of its citizens and is calling on France to urgently provide Durov with “all necessary consular services.” In addition, Telegram CEO Pavel Durov appears to have been charged with 12 counts.
Ton price fell 7.8% in the last 24 hours to trade at $5.38, but whale activity around TON suggests that major shareholders are preparing for Durov’s imminent release.
TON whale activity suggests something is in the water
Data from Santiment shows that whales bought up a large portion of TON at the bottom when it crashed. The blue line shows that whales bought $3.29 million to $3.48 million worth of TON, while the yellow line shows a steady mega accumulation from August 20 to August 25, when these whales sold $4.07 million to $3.98 million worth of assets. This shows that the whales might have insider information, which is why they might accumulate TON.
Furthermore, the increase in whale transactions on August 26 shows accumulation after the crash. It is the largest increase since June 2, after which the price rose 32% and reached a new all-time high.
TON’s daily active addresses (DAA) spiked on August 26, along with the number of transactions. This shows activity among investors and is a bullish signal for Toncoin price, as high network activity means volatility will be high when or during the recovery.
On August 26, both the 30-day and 365-day MVRV (Market Value to Realized Value) ratios for Toncoin reached oversold territory, which usually indicates a buying opportunity for investors. The 365-day MVRV reached almost -10%, a level last seen on August 5 during the broader market crash. Historically, such low MVRV levels have preceded price rallies, as evidenced by Toncoin reaching an all-time high within 9 to 10 days of the previous event.
In addition to the whale activity that day, which could indicate anticipation for Pavel Durov’s release, it is important to highlight the launch of Dogs (DOGS), another Durov project, on the Ton blockchain. This launch is one of the largest on the network since Notcoin. The DOGS airdrop attracted significant attention and led to a surge in transactions that almost overwhelmed the network and caused delays in processing times.
This combination of factors indicates increased interest in TON and related projects, which could influence Toncoin’s price action in the near future.
Frequently Asked Questions (FAQs)
Durov’s imprisonment has sparked speculation among investors, especially TON whales who have accumulated large amounts of Toncoin. The anticipation of Durov’s possible release could act as a catalyst for a price recovery.
Recent data from Santiment suggests that TON whales have been actively accumulating the asset, especially after the price crash. This suggests that large shareholders may have insider knowledge of upcoming events that could positively impact the price, such as Durov’s release.
Given the recent whale activity and the possibility of Durov being released, as well as positive MVRV signals, there is speculation that Toncoin may soon recover. However, market conditions and developments surrounding Durov’s situation will greatly influence the price trajectory.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video games. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes blockchain will revolutionize many industries in the coming years. When he’s not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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