Market Pressure Intensifies for Toncoin
TON, the native token of the TON blockchain, experienced a significant 5% decline over the past 24 hours, dropping from $2.1999 to $2.165. The downward movement wasn’t just a minor fluctuation—it broke through several key support zones that traders had been watching closely. Trading volumes told the story of genuine selling pressure, surging to 5.76 million tokens, which is nearly one and a half times the typical 24-hour average.
There was a brief attempt at recovery during the late trading session, with TON bouncing back from its low of $2.162. But that recovery hit a wall around $2.19, where resistance proved too strong for the token to overcome. The broader cryptocurrency market wasn’t helping matters either—the CoinDesk 20 index dropped 3.7% during the same period, creating a challenging environment for any token trying to move against the trend.
Regulatory Scrutiny Adds to Selling Pressure
The timing of this price decline coincided with some concerning regulatory news. Nasdaq issued a formal reprimand to TON Strategy (TONX), which happens to be the largest publicly listed company building a toncoin treasury. According to an SEC filing from October 28th, TON Strategy failed to obtain the required shareholder approval before issuing stock to finance a substantial token acquisition.
This wasn’t just a minor procedural issue. The deal was structured as a private investment in public equity, or PIPE, and used nearly half of the proceeds—about $273 million—to purchase toncoin. That’s a significant amount of money flowing into the token from a single source, and the regulatory misstep raised eyebrows across the market.
Nasdaq’s Response and Market Implications
Nasdaq did take action on the rule violation, but stopped short of recommending delisting for TON Strategy. The exchange noted there was no apparent intent to evade compliance, which probably saved the company from more severe consequences. Still, the warning adds another layer of complexity to TON Strategy’s broader effort to establish legitimacy for its public treasury focused on cryptocurrency.
TON Strategy currently holds 217.5 million tokens, making it one of the largest holders in the ecosystem. When a major holder faces regulatory scrutiny, it naturally creates uncertainty among other investors. I think this uncertainty, combined with the broader market downturn, created the perfect storm for TON’s price decline.
Technical Levels Take Center Stage
With the regulatory news now in the market, price action appears to be shifting back to technical factors. Support seems to be forming around that $2.162 level where the late-session bounce occurred, while resistance at $2.19 continues to act as a ceiling for any recovery attempts. Technical traders will likely be watching these levels closely in the coming sessions.
The situation highlights how regulatory developments can quickly shift market dynamics, even for tokens with strong fundamentals. For TON Strategy, the path forward involves navigating both market sentiment and regulatory compliance—a challenging balance for any company operating in the cryptocurrency space.
