Will Telegram-Linked Toncoin Recover After Pavel Durov’s Arrest?
Date: 2024-08-26 Author: Henry Casey Categories: CRYPTO PAYMENTS
The decline was caused by panic selling on news of Durov’s arrest by French authorities on charges of violating data privacy and cryptocurrency regulations.
However, there are signs that Toncoin may recover. The situation is reminiscent of what happened to Binance Coin (BNB), which also experienced a drop before a sharp rise when its CEO Changpeng Zhao faced legal troubles. After the initial shock, BNB recovered by 35% as traders realized that the problems did not threaten the company’s existence.
A similar development is possible for Toncoin. If the market perceives Durov’s arrest as an isolated incident that does not affect the Toncoin ecosystem, then the current drop could be viewed by traders as an opportunity to buy the asset at a low price with the expectation of its recovery.
From a technical perspective, Toncoin is trading within an ascending channel, with the lower trendline acting as strong support. The price has already rebounded from this level, and the relative strength index (RSI) is approaching the oversold zone, which could lead to consolidation or recovery. If TON continues to rise, the target could be the upper line of the channel at around $8.50, which means a potential increase of 50%.
Further signs of confidence among traders can be seen in the Toncoin futures market. Open interest (OI) in TON futures has reached its highest since July, and funding rates have increased significantly, indicating that traders are willing to pay a premium to hold long positions. If this momentum continues, Toncoin could significantly strengthen its position and reach new heights.
Thus, despite the sharp drop following Durov's arrest, there is a chance that the market will stabilize and Toncoin may regain its lost ground if traders regain confidence in its future.
