With a streak of three-day falls, Toncoin, under extreme selling pressure, warns of an extended downfall. Will the downfall in Toncoin bottom out before $5?
Pavel Durov, the CEO of Telegram, was suddenly arrested at the French airport over the weekends, crashing the TON token prices. Since the arrest, the Toncoin market cap has dropped 16% and lost the $6 support. With the bearish phase in motion, will Toncoin continue to fall this week?
Telegram Reacts To Durov’s Arrest
Demolishing the bullish hopes for Toncoin, French police turned the tides with the arrest of Telegram’s CEO Pavel Durov. As the native currency of The Open Network (TON), previously known as Telegram Open Network, the arrest quickly plunged Toncoin.
According to reports, Durov’s alleged failure to mitigate criminal activities and communication over Telegram was the main reason behind the arrest. It is no news Telegram is famous among the harmful elements, but the messaging app follows the Digital Services Act of the EU.
Recently, Telegram highlighted its moderation as being at par with the industry standards and regular updates. Further, Telegram questions the platform or its owner’s responsibility for its abuse.
As the user base expands to almost a billion globally, Telegram highlights its position as a crucial platform for communication and information sources.
Toncoin Breaks Under $6
Following the all-time high of $8.28, Toncoin slipped to $5.28 near the 200-day moving average as the broader market crashed in early August. However, with a V-shaped recovery, Toncoin prices improved and hopes for $10 resurfaced.
Durov’s arrest led to an 11.49% drop in Toncoin on Saturday, contributing to a total decline of 16% since then. This downturn began from an overhead trendline and the 50-day moving average, resulting in a new lower high. Consequently, there is a likelihood of a bullish recovery.
In the daily chart, the $5.94 breakdown warns of the $4.86 retest formed in early August, a 13% slip from the current price. The current price of Toncoin is $5.63, with an intraday drop of 2.25% and a third consecutive bearish candle in the making.
Further, the altcoin struggles to find support for the 200-day moving average and trades below it. A closing under the average line will siren a bearish signal.
Where is Toncoin Headed?
As the arrest resulted in a quick fall in Toncoin, any negative development in the case will further deteriorate the market value. In the recent fall, Toncoin’s market cap dropped below Tron, slipping to 10th rank in the crypto market.
With the next support at $4.86, the downfall will likely retest the level with a long-tail formation. However, a breakdown can find the next bouncepads at $4.34 and $3.56.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
