TON Falls 20% Following Telegram CEO Pavel Durov’s Arrest
Telegram CEO Pavel Durov's arrest caused Toncoin (TON) to plunge 20%, nearing a crucial $4.75 support level. If this support breaks, further declines could follow, while a rebound depends on clearing the 100-day Simple Moving Average (SMA).
Telegram CEO Pavel Durov was detained by French authorities on Saturday evening upon arriving at Le Bourget airport. The news of Durov’s arrest quickly spread across social media, generating a flurry of reactions and varying levels of detail.
In response to the arrest, Toncoin (TON), the cryptocurrency developed by Telegram, experienced a significant 20% decline. This sharp drop was accompanied by high trading volume, signaling a strong bearish trend. The token is now approaching the $4.75 support level, which has previously held firm during major declines in May and August 2024.
Chart by TradingView
Should the $4.75 support level fail, the next significant support is at $2.75. This level corresponds to the peak of TON’s bull runs in 2022 and 2023. A fall to this level would erase much of the impressive 300% gains TON achieved in 2024.
Can TON Recover?
If Toncoin manages to hold above the $4.75 support, it may test the $7.20 resistance. A successful breakout above this resistance could pave the way for a new all-time high at $8.30.
For a recovery to gain momentum, TON will need to rise above the 100-day Simple Moving Average (SMA) on the daily chart. The 100 SMA has been a crucial indicator, serving as both support and resistance. When TON trades above the 100 SMA, it typically finds support, whereas trading below it often leads to resistance.
Bottom Line: Pavel Durov's arrest has led to a 20% drop in Toncoin (TON), bringing it close to the $4.75 support level. If this level is breached, further losses could follow. Conversely, holding above $4.75 might lead to a rebound, with recovery dependent on overcoming the 100-day SMA.
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