As a seasoned researcher with a knack for deciphering market trends and a keen interest in the crypto realm, I find myself scrutinizing the recent plunge of Toncoin prices following the arrest of Telegram CEO Pavel Durov. This incident undoubtedly casts a long shadow over the TON network, and the ensuing price action is reminiscent of a storm brewing on the horizon.
toncoin‘s price dropped by 6.4%, reaching $5.5, during a weekend session with reduced volatility. This steep decline in value may be connected to the recent arrest of Telegram CEO Pavel Durov at Le Bourget airport, who is currently facing severe accusations such as terrorism. As a result, TON‘s price has fallen below its 200-day Exponential Moving Average and is now vulnerable to losing the multi-month support level at $4.7.
Toncoin Price Signals Further Decline Amid Pavel Durov’s Arrest
On Saturday, there was a notable departure of Toncoin, the digital currency associated with the TON blockchain, possibly due to the news that Telegram’s CEO, Pavel Durov, had been taken into custody upon arrival at Le Bourget Airport in France.
The arrest was executed based on a warrant issued by France’s OFIM (Office de Lutte contre les Infractions aux Mineurs), an agency dedicated to safeguarding minors from violent acts. This law enforcement move is connected to the ongoing police inquiry into alleged inadequate moderation policies at Telegram, which are accused of fostering illegal activities on their messaging service.
According to reports, Durov is reportedly under investigation for a range of severe offenses including alleged activities in terrorism, narcotics trafficking, widespread fraud, money laundering, violating sanctions, and dealing with content involving child abuse, among others.
Consequently, over the past 48 hours, the value of Toncoin dropped by 16.7%, and its total market capitalization fell to approximately $14.2 billion.
According to data from CoinGlass, the value of outstanding Toncoin contracts in the futures market surged to approximately $303 million as per the arrest report, suggesting that speculative traders might be opening new short positions, possibly predicting a future price drop.
Bearish Reversal Pattern Points to $4.7 Breakdown
Starting from mid-August, the price of Toncoin has seen a significant downturn, moving from $7.26 down to $5.6. This represents a decrease of 22.87%. This bearish shift visible on the daily chart suggests the emergence of a substantial reversal pattern known as an inverted head and shoulder pattern. This pattern is composed of three peaks: a peak at its highest (the head) accompanied by two lower ones (the shoulders), often indicating a potential change in market direction.
The falling TON price recently breached below the 200-day EMA support, strengthening the selling influence on this asset. If the bearish momentum persists, the sellers could drive a 14.7% fall to challenge the $4.78 multi-month support.
If the price drops below the $4.8 support level, it could indicate a significant downtrend that might push the asset’s value down to $3.8, then potentially $2.3, and finally to $1.37.
If Pavel Durov is freed after questioning and any possible opposition from foreign entities, there’s a chance that the Toncoin price might surge past its $4.7 support level, thereby contradicting the negative investment theory.
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2024-08-25 15:22