Toncoin (TON) Must Reclaim $4.70 Support Or Face Potential 45% Drop, Analyst
September 05 2024 - 4:00AM
NEWSBTC
Toncoin (TON), the native cryptocurrency of The Open Network
blockchain, has experienced a challenging week, further compounded
by a broader market downturn and the recent arrest of Telegram CEO
Pavel Durov. Currently trading at $4.62, Toncoin is below a
critical support level that analysts believe is essential for a
price recovery. Toncoin Faces Critical Support Challenge In a
recent social media post on X (formerly Twitter), crypto analyst
Ali Martinez has highlighted the urgency for Toncoin to reclaim the
$4.70 mark soon. Failure to do so could trigger a significant
correction of up to 45%, potentially dropping the token to around
$2.60. Martinez noted that the token’s three-day chart is
forming a head and shoulders pattern, which indicates that if
Toncoin cannot consolidate above the $4.70 level, it may invalidate
the bullish outlook and lead to a steep decline. Related Reading:
Bitcoin Analyst Points To $55,000 As Potential Bottom – US
Liquidity The Key The backdrop to this turmoil includes the recent
arrest of Pavel Durov in France at the end of August. Reports
indicate that Durov was taken into custody for initial questioning
related to serious allegations against Telegram, including claims
that the platform facilitated criminal activities such as fraud,
drug trafficking, and the dissemination of child pornography.
Additionally, the app has faced criticism for its perceived lack of
content moderation and alleged connections to extremist groups.
Durov’s arrest has sparked a wave of backlash from Russian
politicians, some of whom suggest that the detention may be
politically motivated. Tatyana Moskalkova, Russia’s top human
rights official, claimed that French authorities aimed to undermine
Telegram, a platform known for its emphasis on privacy and free
speech. Potential Ban Looms For Telegram The legal troubles for
Telegram extend beyond France, as the Indian government has
initiated an investigation into the messaging app. Concerns have
arisen regarding its use for criminal activities, including
extortion and gambling. Allegations suggest that Telegram’s
peer-to-peer communication features have been exploited by “bad
actors” to facilitate illicit actions. Complicating matters,
Telegram lacks a physical office in India, which hampers the
government’s ability to regulate and investigate the platform
effectively. Related Reading: Analyst Says Litecoin Will Outperform
Bitcoin And Large Cap Cryptos With 11,000% Breakout Depending on
the investigation’s findings, Telegram could face significant
repercussions, including a potential ban in India. This ongoing
scrutiny of the platform and its leadership poses additional
challenges for Toncoin, as market sentiment continues to be
influenced by developments surrounding Telegram and its CEO. It
remains to be seen whether positive outcomes on these legal matters
could provide the much-needed catalyst for TON to rally in the
coming days, as the market continues to show a lack of demand and
buying pressure led by the largest cryptocurrencies on the market.
Featured image from DALL-E, chart from TradingView.com
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