TONCOIN has fallen for three consecutive days and is under extreme selling pressure, warning of a prolonged decline. Will TONCOIN’s decline bottom out before $5?
The sudden arrest of Telegram CEO Pavel Durov at a French airport over the weekend has caused the price of the TON token to crash. Since the arrest, TON’s market cap has fallen by 16% and lost support at $6. With the bear market on the way, will TON continue to fall this week?
Telegram reacts to Durov’s arrest
Crushing bullish hopes for Toncoin, French police turned the tide by arresting Telegram CEO Pavel Durov.. Toncoin, the native currency of The Open Network (TON), formerly known as the Telegram Open Network, has fallen sharply following the arrests.
According to reports, the main reason for Durov’s arrest was his failure to curb criminal activity and communication on Telegram.. It’s no secret that Telegram is notorious for being a toxic element, but the messaging app complies with the EU’s Digital Services Act.
recently, telegram The company stressed that its moderation is on par with industry standards and is regularly updated. Moreover, Telegram questions the responsibility of the platform or its owners for abuses.
As its user base expands to nearly one billion worldwide, Telegram has strengthened its position as a key platform for communication and information sources.
TON Coin surpasses $6
Following an all-time high of $8.28, TONCOIN fell to $5.28 near its 200-day moving average as the broader market crashed in early August, but a V-shaped recovery saw TONCOIN’s price rise and renewed hopes for a $10 bid.
Durov’s arrest led to a 11.49% drop in Toncoin on Saturday, bringing its total decline since then to 16%. The drop began with the upsloping trendline and 50-day moving average breaking into new lows, which could result in a bullish recovery.
On the daily chart, a drop to $5.94 would warn of a retest of the $4.86 level formed in early August, or a 13% drop from current prices. Toncoin’s current price is $5.63, down 2.25% intraday, continuing its third consecutive bear market.
Moreover, the altcoin is struggling to find support at the 200-day moving average and is trading below it, as a close below the average would sound a bearish signal.
Where is Toncoin headed?
Due to the arrest, Toncoin has plummeted. Negative The developments in this case will likely cause its market value to decline further. With the recent drop, Toncoin’s market capitalization is It has fallen below Tron and into 10th place in the cryptocurrency market.
The next support is at $4.86 and any dip could retest the level with a long tail formation, however, if it breaks below, the next bounce pads could be $4.34 and $3.56.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
