$TON experienced a sharp 25% decline on August 25, reaching $5.24 following the unexpected arrest of #TelegramCEO #PavelDurov by French authorities. The charges, related to data privacy and crypto regulation, sparked a wave of panic selling due to Telegram's close ties with #TON and Durov's key role in its adoption.
Despite the current downturn, technical analysis suggests potential opportunities:
Uptrend Integrity: TON remains within its ascending channel on the daily chart, with prices recently bouncing off the lower trendline that has served as reliable support throughout the year.
The Relative Strength Index (#RSIIndicator ) hit 49 on August 27. The neutral RSI implies that a dramatic bounce or further decline is less likely in the immediate term.
Bullish Potential: The upper boundary of the channel sits at approximately $8.50, indicating a possible 50% surge if TON returns to this level. The RSI supports this bullish outlook, suggesting the coin may be primed for a rebound.
While the immediate reaction to Durov's arrest has been negative, some traders view this dip as a buying opportunity, especially if Durov's legal issues prove to be an isolated incident. However, investors should remain cautious and monitor developments closely, as the situation remains fluid and could impact TON's short-term performance.
