Toncoin (TON) Drops Over 7% Despite New Trading Approval in Kazakhstan

As an experienced financial analyst, I find Toncoin’s (TON) sudden dip below 7% despite gaining approval for trading in Kazakhstan quite intriguing. The optimistic expectations from investors following this news were understandable, given the potential for increased market activity and confidence due to the region’s massive population.

The native token of The Open Network, Toncoin (TON), has unexpectedly dipped by more than 7% in the past day, despite being granted approval for trading in Kazakhstan. This setback came as TON was introduced to the market with advantageous conditions aimed at challenging prominent cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Polygon (MATIC), Aptos (APT), and Cardano (ADA).

TON Dips Over 7%

On June 28, the Financial Services and Regulatory Committee of Kazakhstan (AFSA) granted approval for TON to conduct transactions within its jurisdiction. According to the committee, this digital asset fulfilled the necessary conditions to operate legally in the Asian nation.

As a Toncoin investor, I was excited about the potential price surge after the recent news. With the vast population of the region taking notice, I believed that increased market activity and renewed confidence would follow.

Despite the positive outlook, Toncoin experienced a significant drop in value on Thursday. According to CoinMarketCap’s data, its worth decreased by over 7%, dropping from $7.81 to approximately $7.35. The digital currency now has a market capitalization hovering around $17 billion.

Despite the turbulence affecting TON and the cryptocurrency sector at large, usage on the blockchain has persisted, with significant activity reported as of June 4. The Open Network currently boasts a total value locked (TVL) of $665 million. As per DefiLlama’s latest data, over $559 million worth of stablecoins are being held on the platform.

As a financial analyst, I’ve observed a significant milestone reached by the Telegram protocol. It surpassed the $600 million mark in Total Value Locked (TVL) back in June and has since then continued to thrive, reaching an impressive $620 million on June 20th.

Bitcoin Drops below a Critical Price Level

Despite the increased trading volume on the TON platform, the recent drop in the token’s price remains a cause for worry among investors. This is not an unprecedented situation as other cryptocurrencies, including Bitcoin (BTC), have also experienced declines over the last 24 hours. On Thursday, BTC saw a significant three-day slide, falling below the $60,000 mark to around $58,000. As a result, BTC has lost roughly 5% of its value since then.

The Bitcoin price drop was noteworthy as it fell beneath a crucial technical benchmark called the 200-day moving average (MA). To put it simply, the 200-day MA is a widely adopted measurement in finance, encompassing stocks and cryptocurrencies. It signifies the average closing price of an asset over the previous 200 days, offering valuable information on extended trends to analysts and traders.

As a crypto investor, when I observe that the price of a particular asset falls below its average, I take it as a possible indication of changing market sentiments or trends. For instance, recently, Bitcoin dipped down to a price point last seen in May 2021.

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2024-07-04 15:37