Toncoin Price Surge Following Pavel Durov’s Departure from France
Toncoin (TON) has experienced a significant surge in price, rising by 45% from its recent low as Pavel Durov, a prominent figure in the crypto community, was permitted to leave France after an extended period. This surge propelled Toncoin to reach a high of $3.6240 on Saturday, marking its highest value since February 24 and pushing its market cap beyond $8.4 billion.
Pavel Durov, who had been detained in France since 2024 on various charges, including complicity in managing an online platform facilitating illicit transactions, was recently granted his passport by French authorities, allowing him the freedom to exit the country. This development played a significant role in driving the surge in Toncoin’s price, which also coincided with a broader rebound in crypto prices.
Concerns Surrounding Toncoin’s Price Stability
Despite the recent surge in Toncoin’s price, there are lingering concerns about the sustainability of this upward trend due to certain weaknesses in the token’s on-chain metrics. Data compiled by TonStat indicates that TON inflation has been steadily increasing, currently standing at 0.40%, up from 0.33% in October, as the total supply of Toncoin has expanded to over 5.124 billion.
Moreover, there has been a notable decline in the number of daily transactions on the TON Blockchain, plummeting from nearly 20 million in September of the previous year to a mere 2.15 million currently. This decrease in transaction volume is mirrored by a dwindling number of active wallets on the TON Blockchain and a substantial reduction in the total value locked in its DeFi ecosystem, which has shrunk from nearly $800 million to $180 million.
Additionally, the performance of various tokens within the TON Blockchain, such as Hamster Kombat (HMSTR), Catizen (CATI), and Tapswap, has been lackluster, leading to significant value erosion and contributing to the overall uncertainty surrounding Toncoin’s price trajectory.
Potential Price Correction and Market Analysis
Analyzing the price chart for Toncoin reveals a bounce back from a recent low of $2.3650 earlier in the month, with the token surging to a high of $3.50, a level that aligns with the 50-day moving average, signaling a notable resistance point. Furthermore, the token encountered resistance at the weak stop and reverse point of the Murrey Math Lines, indicating a potential reversal in its upward momentum.
Given these technical indicators and the historical behavior of crypto markets in response to major news events, there is a possibility that Toncoin’s price may experience a correction as investors begin to sell on the news of Pavel Durov’s release. It is not uncommon for traders to initially overreact to significant developments, only to readjust their positions in the days that follow, leading to potential price declines.
In conclusion, while the recent surge in Toncoin’s price following Pavel Durov’s departure from France has garnered significant attention, there are underlying factors, such as weak on-chain metrics and market dynamics, that suggest this upward trend may be short-lived. Investors and traders in the crypto space should exercise caution and closely monitor developments in the Toncoin ecosystem to make informed decisions regarding their investments.
By: [Your Name], Crypto Correspondent.
