TON experienced a sharp 20% drop, falling to around $5.11 after news surfaced that Pavel Durov, its original creator, was allegedly charged and arrested in France. Additionally, India is reportedly investigating Telegram, which could lead to a potential ban of the app in the country. These developments have caused market uncertainty around TON, leading to significant selling pressure.
From a technical analysis perspective, looking at the chart provided, TON is currently trading below both its 50-period (6.228) and 100-period (6.371) Exponential Moving Averages (EMA), indicating a bearish trend. The recent drop has led to a steep decline, with the nearest support level potentially around the 4.9 to 5.0 range, based on recent price action and volume clusters. If this support level fails to hold, TON could further test lower levels, possibly around 4.5 or even lower, depending on market conditions and news developments.
Given the current volatility, traders should exercise caution and consider monitoring news updates closely to assess any further impact on TON's price movements. The MACD indicator also suggests a bearish momentum, with the MACD line crossing below the signal line. This negative crossover typically signals further downside potential unless a reversal pattern emerges.
