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The main network asset of the TON network, Toncoin, plummeted by over 15% in the past 24 hours, hitting $5.5 during what was expected to be a tranquil weekend trading session. This abrupt downturn is linked to the recent detention of Telegram’s founder and CEO, Pavel Durov, in France, which has sent shockwaves through the cryptocurrency market.
What Led to Durov’s Arrest?
Pavel Durov’s arrest at Le Bourget Airport in France has alarmed both Toncoin and other altcoin investors. The warrant for his arrest was issued by France’s OFIM, an agency dedicated to protecting children from violence. The incident has ignited serious debates about Telegram’s future and, by extension, the TON network.
Durov is facing severe allegations, including terrorism, drug trafficking, money laundering, and involvement in child abuse materials. These charges have significantly impacted market sentiment.
How Did Toncoin React?
In response to Durov’s arrest, TON experienced a sharp decline, losing over 15% of its value within the last 48 hours. The market capitalization of Toncoin also suffered, dropping to $14.2 billion. The altcoin’s price fell below the critical 200-day Exponential Moving Average (EMA), a key technical indicator watched by investors.
Market experts are particularly worried about an emerging bearish pattern known as an inverse head and shoulders on the daily chart. This formation suggests a potential trend reversal and further devaluation. Should the selling pressure continue, Toncoin could test support levels at $4.7, with the possibility of declining further to $3.8, $2.3, and even $1.37.
Potential Market Scenarios
CoinGlass data shows that open interest in Toncoin futures has surged to $303 million, indicating that short sellers are betting on further declines. However, if Durov is released and clears his name, there may be a chance for a recovery. A swift resolution of the legal issues and stability at the $4.7 support level could lead to a rebound in Toncoin’s price.
Key Insights for Investors
- The arrest of Telegram’s CEO has caused a significant drop in Toncoin’s value.
- Market analysts are monitoring a bearish inverse head and shoulders formation, indicating potential further declines.
- Open interest in Toncoin futures is rising, suggesting more short positions.
- Resolution of Durov’s legal issues could potentially stabilize and rebound Toncoin’s price.
Currently, investors are keeping a close eye on developments related to Durov’s arrest and its repercussions on Toncoin, while market uncertainty continues to hover.