Toncoin ($TON) recently saw a sharp drop in value after Telegram CEO Pavel Durov was unexpectedly arrested by French authorities on charges related to data privacy and cryptocurrency regulations. The coin’s price plummeted by 25%, hitting $5.24 as panic selling surged.
Telegram has played a major role in promoting Toncoin, making Durov a key figure in the coin's journey. His arrest caused a wave of panic among traders, leading to a significant sell-off. However, this drop in price might be a chance for savvy traders to buy low, especially if Durov’s arrest turns out to be an isolated incident.
Looking at past trends, Toncoin’s situation is similar to what happened with Binance Coin ($BNB ) when its former CEO Changpeng Zhao (CZ) faced legal issues. BNB initially fell but rebounded strongly after the market reassessed the situation. This suggests that if the market calms down and sees Durov’s arrest as not having a long-term impact, Toncoin could also bounce back.
Technically, Toncoin is still trading within a steady upward channel. It recently hit a support level, which often indicates a potential for price recovery. The coin’s relative strength index (RSI) also suggests it’s nearing an oversold point, hinting at a possible rebound.
Additionally, futures market data shows growing confidence in Toncoin. There’s been a notable increase in open interest and funding rates, signaling that traders are betting on a price recovery. If this momentum continues, Toncoin could see a significant price increase, potentially reaching around $8.50 or higher.
In summary, while Durov's arrest has caused a temporary dip, Toncoin may have a good chance of bouncing back if the market stabilizes and sees this event as a short-term issue.
