The price of Toncoin (TON) has been on a downward slope since Pavel Durov, the founder of Telegram, was Arrested in France on August 25. Durov was arrested at an airport near Paris under a special police unit OFMIN warrant.
These allegations have stirred up controversy that the Telegram CEO was involved in drug trafficking, child exploitation, and crypto fraud, among other charges. Consequently, after the news about Durov’s arrest broke, the value of Toncoin fell by more than 22% and was recorded at $5.2 from a previous high of $6.8.
However, this sharp fall in its price happened despite The Open Network still being up and running at its very core, which hosts its fundamental blockchain on which Toncoin is dependent.
Source: CoinMarketCap
At press time, TON was trading at $5.44, a 1.71% decline from the 24-hour high. This decline was accompanied by dips in market capitalization and 24-hour trading volume by 1.78% and 17.67%, respectively, to $13,849,419,712 and $910,777,059.
Will TON Price Recover?
Even after momentarily recovering from some losses, Toncoin’s value remains unstable and fluctuates according to the state of the market. This has been exacerbated by rising trading activity, as seen from the huge surge in open interest for TON futures—from $200 million to $360 million, reflecting an increase of 80%.
The continuing legal obstacle has put Toncoin in a hard place. Technical indicators show a bearish dominance in the market. Increasing selling pressure has been on the trend, with investors worrying about potential outcomes of the suit.
— Elon Musk (@elonmusk) August 25, 2024
In reaction to the arrest, the TON community and Elon Musk confirmed their commitment to the principles of freedom of speech and decentralization. The community strongly supported Durov and said that it would not change the mission. Even if things were rough, the community kept going and became the thing that unites members.
TON Market Sentiment
Amid the bullish whale inactivity, there was a strong reaction from inside the Toncoin market. Data from Sentiment suggests that a large holder of TON is buying at lower prices, suggesting a strategic move that Durov’s potential release may have taken out.
In addition, the MVRV Ratio also shows that TON is already deep into the oversold zone, which indicates that TON could be approaching an opportunity for buying. The market is still playing cautious, and hence, the way forward in price for Toncoin will depend on the outcome of developments surrounding Durov’s legal troubles.
Source: TradingView
Moreover, the Relative Strength Index (RSI) is recovering as it moves upward, with a reading of 37.39. This trend suggests that the bearish trend may have reached its peak and paved the way for a bullish recovery toward $5.6 and $6 should positive developments arise from the Telegram CEO arrest.
In addition, the Chaikin Money Flow (CMF) is recovering despite being in the negative region with a rating of -0.07. With its trend near the 0 line, the CMF suggests that money is starting to enter the market.
