Toncoin (TON) experienced a significant drop in value over the past 24 hours, plummeting as much as 21% to $5.33 on August 25.
Toncoin (TON) experienced a significant drop in value over the past 24 hours, plummeting as much as 21% to $5.33 on August 25. This sharp decline was triggered by the news of Telegram CEO Pavel Durov's arrest in France, which ignited panic selling among investors. Durov, who is facing serious allegations related to data privacy and cryptocurrency regulations, was detained at Le Bourget Airport after arriving from Azerbaijan.
Telegram has since released an official statement on the messaging app, stating that “Telegram abides by EU laws, including the Digital Services Act,” and “CEO Pavel Durov has nothing to hide and travels frequently in Europe.”
However, Durov's central role in promoting and integrating Toncoin within Telegram’s ecosystem has made him a pivotal figure in the TON ecosystem. As investors reacted to the unfolding situation, the market sentiment shifted dramatically, leading to widespread selling.
Despite the current turmoil, some analysts believe that Toncoin may be poised for a rebound in the coming weeks. Historical patterns suggest that cryptocurrencies often recover after initial panic selling.
From a technical standpoint, Toncoin is trading within a well-defined ascending channel, with recent movements indicating a bounce from the lower trendline, which has provided strong support since earlier this year. The daily relative strength index (RSI) for TON was recorded at 37.54 on August 25, approaching the oversold threshold of 30. This typically signals a potential for consolidation or a rebound.
Additionally, futures market data for Toncoin points to increasing confidence among traders. Following Durov's arrest, the open interest (OI) for TON rose to $303.62 million, marking its highest level since July. Furthermore, the funding rates for Toncoin reached a three-month high of 0.0101%, indicating that traders are willing to pay a premium to maintain long positions.
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