- After Pavel Durov’s release and public relief, Toncoin bounced back above $5.
- Volumes surged by more than 148%, driving interest in both spot and futures markets.
- There is a resistance line forming at $5.51, and if a breakout occurs, TON can rise to its next target of $6.19.
Toncoin (TON), the native cryptocurrency of the Toncoin blockchain, has experienced significant volatility in recent weeks due to the events surrounding Telegram and its founder Pavel Durov. After a sharp drop in price following Durov’s arrest in France, the coin has since recovered to over $5.
With the next resistance level at $6.19, investors are watching closely as technical indicators suggest a short-term downtrend despite renewed optimism.
Why is Toncoin price rising?
Toncoin has been in turmoil since the arrest of Telegram CEO Pavel Durov in late August. Due to TON’s close ties to the popular messaging platform, the token lost more than 30% of its value in a matter of weeks, hitting a low of $4.45.
Concerns about the future of Telegram and its potential impact on TON drove much of the downtrend.
However, recent developments have caused the price to recover slightly. Durov’s parole and his public statements about his arrest have sparked renewed interest in the asset.
In his remarks, Durov criticized French authorities’ approach to his arrest and reassured Telegram’s 950 million users about the platform’s future.
I am still trying to understand what happened in France, but we hear the concerns. I have made it my personal goal to prevent those who abuse the Telegram platform from disrupting the future of its 950 million+ users.
The full post is below: https://t.co/cDvRSodjst
— Pavel Durov (@durov) September 5, 2024
Thanks to Durov’s comments and a revamped Telegram privacy policy that allows users to moderate private chats, TON got the boost it needed to recover above $5.
In addition to the positive sentiment resulting from Durov’s launch, Toncoin’s trading volume has surged by over 148%, indicating increased activity on both the spot and perpetual futures markets.
TON Price Technical Analysis
From a technical analysis perspective, the short-term outlook for Toncoin remains bearish. Ten of the 17 technical indicators suggest a sell, while only two recommend a buy.
Despite some recovery, the coin is still below several major exponential moving averages (EMAs), including the 20, 50, 100, and 200-day EMAs. However, it has remained above the 10 EMA.
The recent bounce has taken TON above the key price level of $5, but technical analysis suggests that it will face resistance at $5.51, which needs to be surpassed for further upside.
A successful close above $5.51 would open the door for a rally towards $6.19.
Conversely, if it fails to hold above $5, TON is likely to test the $4.94 support level, below which further declines are expected.