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Highlights
- Toncoin price tumbled 16.7% after Telegram CEO Pavel Durov was detained in France, facing allegations of terrorism, drug trafficking, and more.
- Inverted head and shoulder pattern formation signals an initial shift in market sentiment from buying-on-dip to selling-on-rallies.
- A bearish crossover between the 20-and-50-day Exponential moving average could accelerate the selling pressure.
Toncoin price plunged 6.4% to $5.5 amid a less volatile weekend session. The sudden selling pressure is linked to the recent arrest of Telegram CEO Pavel Durov at Le Bourget airport. Facing serious charges, including terrorism, the TON price has plunged below its 200-day Exponential Moving Average and is now at risk of losing multi-month support at $4.7.
Toncoin Price Signals Further Decline Amid Pavel Durov’s Arrest
Toncoin, the native cryptocurrency of the TON network, witnessed a significant outflow on Saturday following the report that Telegram CEO Pavel Durov was detained after his private jet arrived at Le Bourget Airport, France.
His arrest was carried out on a warrant from France’s OFIM, which focuses on protecting minors from violence. This law enforcement action is tied to the police investigation into Telegram’s insufficient moderation practices, which are claimed to have allowed criminal activities to flourish on the messaging platform.
Durov allegedly faces charges of terrorism, drug trafficking, mass fraud, money laundering, sanctions evasion, and involvement with material related to child exploitation, among other serious accusations.
Therefore, the Toncoin price tumbled 16.7% in the last 48 hours while the market cap plummeted to $14.2 billion.
Amid the arrest report, the Toncoin open interest in the future market spiked to $303 Million, according to CoinGlass data. This increase may indicate that short-sellers are actively initiating new positions in anticipation of further correction.
Bearish Reversal Pattern Points to $4.7 Breakdown
Since mid-August, the Toncoin price has experienced a notable correction from $7.26 to $5.6— a 22.87% decrease. This bearish turnaround in the daily chart shows the formation of a major reversal pattern called an inverted head and shoulder pattern. This pattern consists of three peaks: a higher peak (head) flanked by two lower ones (shoulders), typically suggesting a change in market direction.
The falling TON price recently breached below the 200-day EMA support, strengthening the selling influence on this asset. If the bearish momentum persists, the sellers could drive a 14.7% fall to challenge the $4.78 multi-month support.
A potential breakdown from the $4.8 floor will signal a major correction and drive the asset price to $3.8, followed by $2.3 and $1.37.
Conversely, if Pavel Durov is released following interrogation and potential international objections, the Toncoin price could rebound from $4.7 support to invalidate the bearish thesis.
Frequently Asked Questions (FAQs)
1. Why did the Toncoin price drop by 16.7% in last 2 days?
2. What is the significance of the 200-day EMA for TON?
3. Could Toncoin price rebound if Pavel Durov is released?
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