Following the broader market uncertainty, the toncoin price showed a modest gain of 0.32% to $5.39 on Saturday’s trading session. This consolidation trend below the 200-day Exponential moving average keeps bears in charge of the current market movement. Will the mounting selling pressure push the TON price below $5?
Toncoin Price Volatility May Impact Telegram as 40% of Revenue Ties to Crypto
The financial snapshot of Telegram for 2023 reveals significant insights into the company’s operations and its heavy involvement in the crypto space. DefiIgnas, the co-founder of DeFi Creator Studio PinkBrains, highlighted that 40% of Telegram’s revenue comes from crypto-related sources.
The integrated wallet for crypto transactions and the sale of digital collectibles like usernames and virtual phone numbers fuels this revenue stream. Data sourced from Financial Times shows that Telegram generated $342.5M in revenue in 2023 but ended the year with a loss of $108M.
This indicates the company struggles to balance income and operation expenses amid the volatile crypto market. The tweet further highlighted Telegram’s Balance sheet, revealing $400 Million in crypto holdings (specifically in TON), which exceeds their cash reserves.
Therefore, the Toncoin price movement could significantly impact Telegram, given the company’s major holding in crypto assets.
Crazy 40% of Telegram’s revenue comes from crypto-related sources:
– Integrated wallet: store, send, receive, and trade crypto
– Sale of digital collectibles: such as usernames and virtual phone numbersIn total, Telegram generated $342.5M in revenue in 2023 but still ended the… pic.twitter.com/GH1wMKCotm
— Ignas | DeFi (@DefiIgnas) August 31, 2024
TON Price Set to Retest Multi-Month Support
Since last week, the Toncoin price has witnessed aggressive selling pressure following the arrest of Telegram founder Pavel Durov. The bearish turnaround plunged the asset from $6.85 to $5.37, registering a 22% loss.Â
An analysis of the daily chart shows a downsloping trendline drives the current correction trend and maintains sell-the-rallies sentiment in the market. With sustained selling, the TON price could plunge 12% to hit $4.72, a horizontal support intact since March 2024.
If sellers flip this crucial support to potential resistance, the Toncoin price could extend correction to $3.3.
On the contrary, the $4.72 level is a crucial accumulation point for buyers. A potential reversal will signal renewed recovery momentum and bolster buyers to breach the overhead trendline.
Frequently Asked Questions (FAQs)
A drop in Toncoin price below $5 could significantly impact Telegram’s revenue streams, as 40% of its income is tied to crypto-related sources.
The current correction trend in Toncoin price is driven by a downsloping trendline, maintaining a bearish sentiment in the market
If Toncoin breaks below the $4.72 support level, it could extend its correction to $3.3
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
âś“ Share: