Toncoin (TON) has recently been caught in the turbulence of legal troubles surrounding Telegram CEO Pavel Durov, whose arrest in France last Saturday caused a dramatic market reaction. With Bitcoin trading below the $60,000 mark and Toncoin’s price grappling with volatility, the question on investors’ minds is whether Toncoin will rebound to the $6 level as the storm around Durov begins to settle.
A Dramatic Drop And A Subsequent Reversal
The arrest of Pavel Durov resulted in a sharp 23.43% drop in Toncoin’s price over a three-day period, pushing it down to the $5 psychological support level. However, the price found stability at this crucial juncture and has since shown signs of recovery. Following Durov’s release on bail, set at $5.56 million, Toncoin’s price began to bounce back.
On Tuesday, Toncoin surged by 6.04%, and continued its upward trajectory with a 1.47% gain the following day. This rebound aligns closely with the timing of Durov’s bail, which may have alleviated some of the bearish pressure. Currently, Toncoin is trading at $5.56, marking its third consecutive bullish candle. Despite this, the cryptocurrency still faces the aftermath of a significant 11% drop from earlier in the week.
Technical Indicators Signal Potential Upside
Despite the slow pace of recovery, technical indicators suggest a promising outlook for Toncoin. The daily Relative Strength Index (RSI) shows a bullish divergence, hinting at a potential double-bottom reversal from the $5 support level. Additionally, the Moving Average Convergence Divergence (MACD) indicator is showing a reduction in bearish momentum, which could signal a forthcoming bullish crossover.
For Toncoin to regain its $6 level, it must overcome the $5.94 resistance. A successful breakout above this resistance could lead to a test of the overhead resistance trend line. The technical setup is favorable, but the ongoing legal proceedings involving Durov could introduce additional volatility.
Looking Ahead
While Durov’s release on bail has offered some respite, the market will remain sensitive to the developments in his legal case. The possibility of increased court appearances and ongoing scrutiny may contribute to fluctuations in Toncoin’s price. Support levels to watch include $4.86, $4.34, and $3.56, which could act as buffers if the price faces downward pressure.
In conclusion, while Toncoin’s recent recovery shows promise, its path to a $6 resurgence will be influenced by both technical factors and external market conditions. Investors should stay attuned to both the cryptocurrency’s price movements and the broader news surrounding Durov’s legal situation for a comprehensive view of Toncoin’s potential trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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