Key Takeaways:
Toncoin price declined heavily following Telegram founder Pavel Durov’s arrest in France.
TON is now trading well below a key bearish trend line with resistance at $6.50 on the daily chart.
The bears remain in action unless the price recovers above the 50-day simple moving average (blue).
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Toncoin price is showing many bearish signs below $6.50. TON could extend losses below the $5.50 and $5.00 levels in the near term.
Toncoin Price Faces Increased Selling Pressure
After Telegram founder Pavel Durov’s arrest in France, Toncoin saw a sharp decline. There was a move from the $6.80 resistance zone and the price declined below the $6.20 level. The price dropped over 10% and traded below the $5.50 level, while Bitcoin and Ethereum climbed higher.
Finally, the bulls appeared near the $5.25 zone. A low was formed at $5.26 and the price started a consolidation phase. There was a minor increase above the $5.50 level, but the price is now well below the 50-day simple moving average (blue).
Toncoin price daily chart | Source: TON/USD on TradingView.com
Recently, the TON community released a statement related to the Telegram’s founder Pavel Durov confirming that the community stands strong and supports freedom of speech and decentralization.
Statement from the TON CommunityFollowing the recent news related to the Telegram’s founder Pavel Durov, we want to assure everyone that the TON community remains strong and fully operational.As a community committed to freedom of speech and decentralization, we stand firmly…
— TON (@ton_blockchain) August 24, 2024
TON price was able to recover above the 23.6% Fib retracement level of the downward move from the $7.27 swing high to the $5.26 low. On the upside, the price faces resistance near the $6.00 level. The first major resistance sits near the $6.25 level.
The main resistance is now forming near the $6.50 level. There is also a key bearish trend line with resistance at $6.50 on the daily chart. The trend line is close to the 61.8% Fib retracement level of the downward move from the $7.27 swing high to the $5.26 low.
A clear move above the trend line resistance might send the price toward the main hurdle at $6.80 and the 50-day simple moving average (blue). If the bulls push the price above $6.80, the price could easily run toward the $7.00 resistance. Any more gains might open the doors for a move toward the $7.80 level.
More Downsides In TON?
Conversely, TON could fail to surpass the trend line resistance or $6.50. In the stated case, it could trim gains and revisit the $5.40 support. The first major support is near the $5.25 level.
The main support is now forming near the $5.00. A daily close below the $5.00 support might start a major decline. The next key support sits at $4.25, below which the price could even retest the $4.00 support in the coming days. Any more losses could open the doors for a test of $3.65.
Overall, Toncoin price is showing bearish signs. If TON fails to recover above $6.00 and $6.50, there could be another decline, and the price could even test $5.00.
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