The main network asset of the TON network, Toncoin, dropped over 15% in the last 24 hours, falling to $5.5 during what was expected to be a calm weekend trading session. The sudden price drop is largely attributed to the recent arrest of Telegram’s founder and CEO, Pavel Durov, in France, which sent shockwaves through the cryptocurrency market.
Durov Arrested in France, Serious Charges
Durov’s detention at Le Bourget Airport in France has raised concerns among Toncoin and other altcoin investors. The arrest, carried out under a warrant issued by France OFIM, a government body focused on protecting children from violence, has sparked serious debates about the future of Telegram and consequently the TON network.
The charges against Durov include serious accusations such as terrorism, drug trafficking, money laundering, and even involvement in child abuse materials.
Inverse Head and Shoulders Formation Risk
In response to the arrest, TON experienced a significant collapse, losing over 15% of its value in the last 48 hours. Toncoin’s market capitalization also took a hit, dropping to $14.2 billion. The altcoin’s price fell below the 200-day Exponential Moving Average (EMA), a critical technical level often monitored by investors to gauge market sentiment.
Market analysts are particularly concerned about the potential for further decline. The recent price movement has led to the formation of a bearish pattern known as an inverse head and shoulders on the daily chart. Typically seen as a precursor to a trend reversal, this pattern indicates that Toncoin is at risk of further devaluation. If the selling pressure continues, the next key support level is $4.7. A break below this level could lead to further declines, potentially dropping the price to $3.8, $2.3, and even $1.37.
According to CoinGlass data, in addition to the downtrend, the open interest in Toncoin futures has risen to $303 million. This increase in open interest is generally seen as a sign that short sellers are increasing their positions and betting on further declines in Toncoin’s price.
However, there is potential for recovery if Durov is released and clears his name. The rapid resolution of the legal issues surrounding Telegram‘s CEO, especially if the price manages to hold at the $4.7 support level after the continued decline, could lead to a rebound in Toncoin’s price. For now, investors are closely monitoring the developments surrounding Durov’s arrest and its impact on Toncoin’s future, while market tension persists.
