Whales bank on Toncoin (TON) amid Telegram’s uncertain future

Toncoin (CRYPTO:TON), associated with the Telegram platform, is facing increased selling pressure following the arrest of Pavel Durov, Telegram's CEO.

Despite this, large holders, or "whales," are capitalizing on the price drop by accumulating more of the token.

However, a bearish head-and-shoulders pattern has formed, signaling potential further declines if critical support levels are breached.

A technical analysis shared by crypto analyst AlienOvichO shows that TON is forming a head-and-shoulders pattern, which is a classic indicator of a trend reversal.

This pattern consists of three peaks—the head and two shoulders—with a neckline acting as a key support level.

Currently, TON is trading at $5.24.

If it breaks below the neckline at $4.78, a further 9% decline is possible.

If the $4.78 support level fails, the next target could be $4.73, with a potential fall to $3.76 if the selling pressure continues.

Despite these bearish signals, data from Santiment reveals that whales, or investors holding between 1 million and 10 million TON tokens, have increased their holdings since Durov's arrest.

This group now controls approximately 9.07% of the total supply of TON.

Conversely, smaller investors, particularly those holding between 10,000 and 1 million TON, have reduced their positions, reflecting uncertainty and cautious sentiment among smaller holders.

Technical indicators also point to market weakness.

The Chaikin Money Flow (CMF) indicator is currently below zero at -0.10, indicating liquidity outflows and a lack of buying support.

Moreover, the Parabolic Stop and Reverse (SAR) indicator dots are positioned above the current price, suggesting a continuation of the downward trend.

If TON can maintain its support levels and market sentiment shifts positively, the price could rally to $5.49, driven by whale accumulation and renewed demand.

However, the immediate outlook remains uncertain, and the market may need time to stabilize.

Amid these dynamics, the next few weeks will be crucial for TON holders, especially with both bullish and bearish forces at play.

Investors are closely watching how the market unfolds and whether the whales' accumulation can counter the broader negative trend.

At the time of writing, the Toncoin (TON) price was $4.91.