A real hemorrhage for the TON crypto, whose market capitalization fell from more than $17 billion to about $13.4 billion, before stabilizing around $14 billion.
The Toncoin cryptocurrency, which is used for payments within Telegram, has lost more than 20% of its value since Telegram messenger founder Pavel Durov was detained in France, according to Binance. Indeed, on August 24, Toncoin’s price plunged by 20%, dropping from $7 to $5.31 in the blink of an eye
Crypto analysts expect Toncoin to continue to dive if the price breaks the support at $5.25. If this happens, the token could fall to $4.72, thus confirming a dreaded ‘head and shoulders’ bearish pattern.
A scenario that investors fear even more as confidence in the crypto has been severely shaken by recent events. With Durov in hot water, TON risks plunging even further.
The fall of Toncoin shows how much this crypto is tied to Telegram’s fate. Originally developed by the platform, TON is now under the control of the TON Foundation. However, this link to Telegram is not reassuring at the moment, especially after Durov’s arrest in Paris, accused of turning a blind eye to illegal activities flourishing on his network.
Telegram, once a pillar for these cryptos, is now becoming a risk factor. The market is waiting to see if Toncoin can rebound by crossing the 20-day exponential moving average at $6.34, a crucial threshold to reverse the bearish trend.
A real hemorrhage for the TON crypto, whose market capitalization fell from more than $17 billion to about $13.4 billion, before stabilizing around $14 billion.
Durov was detained at Paris’ Le Bourget Airport late on August 24. Law enforcement agencies suspect him of being complicit in drug trafficking, crimes against minors and fraud amid the messenger’s lack of moderation, its refusal to cooperate with law enforcement, and the tools provided by the application to sell cryptocurrency, the TF1 television channel reported.
[Source: Cointribune]
