CoinWorld reported:
Despite the current situation of the Telegram ecosystem, the price of Toncoin (TON) continues to rise. Recently, despite regulatory pressures faced by the TON ecosystem, the cryptocurrency has gained value. Currently, regulatory authorities are demanding that the social media platform disclose users’ IP addresses, and the platform may soon comply.
After falling below $5 for a period of time, the price of Toncoin (TON) has once again surpassed this level. The recent rise suggests that the value of the token may continue to approach its historical high.
Moreover, as volatility increases and trends change, the market is reassessing their positions. This analysis reveals the key driving factors behind this change in sentiment and the next steps for TON’s price.
Telegram takes action against illegal activities
Authorities have found that the search function of Telegram has been abused by some individuals for the sale of illegal products. Normally, this function helps users find public channels and bots. However, such abuse has started to jeopardize the presence of this social network in India.
Over the past week, a dedicated team of moderators has attempted to control the situation using artificial intelligence technology. The number of unsafe and problematic content has significantly decreased. In order to avoid such illegal activities, Telegram has decided to provide regulatory authorities with the IP addresses and contact information of users who violate its rules.
The future of TON and changes in Telegram
The situation of Telegram may ultimately affect the TON protocol. Durov emphasized that the search function is intended to find friends and discover news, not to promote illegal products. Although this measure may hinder Telegram’s vision of protecting freedom of speech, Durov believes it is the best course of action.
Durov only showed seriousness about this matter after being detained for several weeks. After meeting with French authorities, Durov promised to improve the overall usage of the social network.
At the time of writing this article, TON’s trading price is $5.62, experiencing a 1.04% decline in the past 24 hours, and a 2.57% increase this week. These regulatory obstacles have not yet affected the price, but changes may occur in the future. If mismanaged, this measure may have a long-term negative impact on TON. Alternatively, most investors may be indifferent to this “crime-fighting public-private transparency measure,” and once the pressure on Telegram eases, the price of TON may rise.
In conclusion, Telegram’s efforts to balance user privacy and security are crucial for the future of the platform. While these measures are expected to reduce criminal activities, they may also exacerbate user privacy concerns. TON investors and users should closely monitor how these developments affect the value and usage of the cryptocurrency.
Despite regulatory pressures faced by Telegram, the TON price continues to maintain strong momentum.
Toncoin shows bearish signals
Data from Santiment shows that the funding rate for Toncoin has turned negative. The funding rate represents the cost of holding open futures positions.
When the rate is positive, longs pay fees to shorts, indicating a bullish sentiment. However, with the rate being negative for TON, shorts are paying fees, indicating traders’ expectation of a price decline.
This shift, combined with TON’s recent price increase, suggests potential bearish prospects. If this pattern continues, the price of the token may decline, targeting potential support in the short term.
The bearish situation of Toncoin may also be related to broader investor behavior. IntoTheBlock data shows that net flows of large holders have decreased by 204% in the past seven days.
This metric tracks whether large investors are accumulating or distributing tokens. A decrease indicates that these major stakeholders are selling more tokens than they are buying. If this trend continues, the price of Toncoin may experience a significant decline, making it unlikely for the token to reach the $7 level in the short term.
More bearish signals
From the daily chart, Toncoin attempted to reach $6 but was resisted by the $5.68 level. This price level also prevented similar movements on September 15.
Therefore, the price level of $5.68 has become a significant resistance level that requires strong buying pressure to break through. However, at the time of writing, TON does not seem to have sufficient trading volume to help break through this resistance level.
Due to this situation, Toncoin faces the risk of falling to $5.21. In highly bearish market conditions, the price may drop to $4.88.
On the other hand, if the token breaks the above resistance level, this prediction may become invalid. In that case, the price of TON may rise to $6.71.
In summary, despite Toncoin’s recent rise above $5, the negative funding rate in the futures market indicates bearish sentiment among traders. The 204% decrease in net flows from large holders reinforces the bearish prospects for Toncoin, indicating that investors are selling more tokens. The price of Toncoin faces strong resistance at $5.68, limiting its reach to $6; if this continues, the price may fall to $4.88.