TON Coin faced selling pressure this weekend after UAE authorities officially denied claims that crypto investors could obtain a Golden Visa by holding digital assets. The clarification, issued by the UAE’s Federal Authority for Identity and Securities and shared widely on social media, directly contradicts a narrative that had previously gone viral within the crypto community.
The impact on the market was immediate. Within hours of the announcement, TON Coin dropped nearly 6% from its intraday high, sliding from above $2.95 to around $2.78 at the time of writing. According to trader Sanjay (@SanjayWeb3), who posted the official statement on X, the correction came swiftly after the government clarified that crypto holdings do not qualify for visa eligibility.
UAE Golden Visa Clarification Sparks Market Repricing
The misunderstanding appears to have stemmed from unverified online claims suggesting that simply holding TON, the native token of The Open Network, could qualify investors for UAE residency. However, the UAE’s statement made it clear:
“The information being circulated regarding the granting of the Golden Visa in exchange for investment in digital currencies is incorrect.”
The clarification came from multiple government bodies, including VARA (Virtual Assets Regulatory Authority) and the Federal Authority for Identity, Citizenship, Customs and Port Security. This unified response immediately deflated the bullish sentiment that had temporarily boosted TON Coin earlier this week.
TON Coin Price Analysis: Breakdown from Local High
From a technical standpoint, the 4-hour chart shows a clear breakdown pattern following the rejection of the $3.00 resistance zone. The rally that began around July 5th has been entirely retraced, and current price action suggests a return to support near $2.70–2.75.
Source: Trading View
Volume data confirms the reversal, with a spike in sell volume occurring immediately after the news broke. While TON Coin is still holding above key moving averages, momentum indicators point to increased bearish pressure in the short term.
Reputational Risk and Future Price Impact
Although this dip may prove temporary, the situation raises broader concerns about how viral misinformation can move markets, especially for altcoins like TON Coin that are still establishing regulatory clarity. While the token benefits from deep integration with Telegram and growing user traction, events like this show how quickly sentiment can turn.
For TON Coin investors, the rejection of the visa narrative removes a speculative tailwind and shifts focus back to fundamentals: adoption, partnerships, and protocol development. In the absence of further bullish catalysts, traders may remain cautious in the near term.
Final Thoughts: TON Coin Faces Volatility After Visa Myth Debunked
The UAE’s response to the Golden Visa rumor has dealt a short-term blow to TON Coin, reminding the market that narrative-driven rallies can unravel fast. While the project remains strong in terms of adoption, this episode highlights the importance of verified information and how quickly price can react when speculation meets reality.
As the crypto market matures, clarity from regulators, especially in regions like the UAE, will be critical. For TON Coin, this may serve as a reset point, where real progress must now replace inflated expectations.
