Toncoin (TON) Price Performance 5 Days Post-Durov Arrest: Whats Next?
Toncoin (TON) has faced significant turbulence in the past five days following the arrest of Telegram co-founder and CEO Pavel Durov in Paris. The close ties between Toncoin and Telegram have caused a sharp reaction in the market, with TONs price plummeting over 25% since the event on Saturday.
This sudden drop has left many holders in distress, uncertain about the tokens future. However, while opinions among analysts and investors vary, some see this as a potential opportunity.
They argue that TON might be entering a reaccumulation zone, presenting a chance for savvy investors to buy at lower prices before the market stabilizes. As the situation unfolds, the focus remains on whether Toncoin can recover from this setback and regain its previous momentum.
Toncoin In Accumulation Zone
Toncoin (TON) is currently trading at the same levels it was at the beginning of the month when the broader crypto market was experiencing significant selling pressure. This retracement has caught the attention of several analysts and traders who believe it presents a strategic opportunity to accumulate TON at a discounted price.
Coin Signals, a well-known group of crypto analysts on X, has shared a chart analysis indicating that Toncoin is potentially in a reaccumulation phase. According to their analysis, the current price levels could offer a 3x to 5x return if the market conditions align favorably. They argue that the recent price drop, triggered by the arrest of Telegrams co-founder and CEO Pavel Durov, may have been an overreaction, creating a buy-the-dip scenario for those willing to take on the associated risks.
However, its important to note that while the potential for substantial gains exists, significant risks are tied to this project, especially in light of recent events. The uncertainty surrounding Telegram and its impact on Toncoin adds an extra layer of complexity for investors. As with any investment, thorough research and risk management are crucial before making decisions.
TON Price Action
Toncoin (TON) is trading at $5.48 after enduring five days of aggressive selling pressure. In the past 12 hours, the price has recovered about 6%, finding resistance at the $5.04 mark, which has been a key demand level over the past month. This price reaction indicates that bulls are attempting to regain control, but the trend reversal is far from confirmed.
For a more definitive shift in momentum, the price needs to break past and hold above the 4-hour exponential moving average (EMA), an indicator that signifies strength in price action. The 4H 200 EMA is currently positioned at $6.41, a significant 18% above the current price. Breaking above this level would be a strong bullish signal.
However, if the selling pressure persists, theres notable liquidity resting below Marchs low at $4.50. Should the price continue to decline, this level would likely act as the next support, making it a critical zone for bulls to defend.
Featured image from Dall.E, chart from TradingView
Text source: NewsBTC
