Toncoin (TON) has taken a nosedive in the past 24 hours, with prices plunging as panic selling erupted following the shocking arrest of Telegram CEO Pavel Durov by French authorities.
On August 25, just a day after the news of Durov’s detention went viral, TON’s price tumbled by as much as 25%, hitting $5.24. The arrest centers around charges related to data privacy and cryptocurrency regulation violations, casting a shadow over the future of TON, a cryptocurrency deeply entwined with Telegram’s ecosystem.
As per the latest news in cryptocurrency, Durov’s arrest sent shockwaves through the Toncoin community, leading to panic selling as traders scrambled to protect their investments. However, several technical and market indicators suggest that TON could be on the brink of a significant rebound.
The ongoing decline in TON’s price bears similarities to the price movement of Binance Coin (BNB) before the sentencing of former Binance CEO Changpeng Zhao (CZ). BNB dropped by 13.5% ahead of CZ’s sentencing in the U.S. on April 30, only to stage a remarkable recovery, surging nearly 35% from its lows to nearly $700 by June 6.
Moreover, technically speaking, TON is currently trading within a well-defined ascending channel, as shown in the daily chart. The TON/USDT pair recently bounced off the lower trendline of this channel, which has served as strong support since its formation earlier this year.
Additionally, TON’s daily Relative Strength Index (RSI) was at 37.54 on Aug. 25, nearing the oversold threshold of 30, a level that typically precedes a consolidation or rebound. The upper trendline of the ascending channel is currently around $8.50, suggesting a potential 50% gain if TON moves toward this target, in line with the bullish momentum indicated by the RSI.
The futures market data also points to growing confidence among traders. Following Durov’s arrest, TON’s open interest (OI) surged to $303.62 million, its highest level since July. Meanwhile, the funding rates for every eight hours hit a three-month high of 0.0101%.
Rising OI suggests that more money is flowing into TON’s futures market, signaling increased interest and speculation on its price direction. The positive funding rates indicate that traders are willing to pay a premium to hold long positions in TON, suggesting a bullish outlook.
If this momentum continues, TON could experience a sharp price appreciation, potentially driving it toward the $8.50 target and possibly beyond.
