Toncoin took a hit, losing more than 25% of its value following the arrest of Telegram founder Pavel Durov in late August.
Toncoin Telegram took a hit and lost more than 25% of its value after the arrest of Telegram founder Pavel Durov. That included a drop to a low of $4.45 on September 6, followed by a rapid 15% rally to over $5.15 on September 9.
Despite the recovery, A technical indicator suggests that Toncoin could be at risk of continuing its prevailing downtrend.
“The inverted cup and handle is a bearish continuation pattern; it is usually resolved when the price breaks below the common neckline support and falls to the maximum distance between the peak and the neckline of the cup,” they explained from Cointelegraph.
In turn, The bearish outlook for Toncoin was further intensified by its association with Telegram and Durovespecially in light of the ongoing global crackdown on the messaging app service.
For example, South Korea has joined the global offensive against Telegram, investigating the platform for facilitating deepfake crimesIndia, Telegram’s largest market with more than 100 million users, also launched an investigation shortly after reports of Durov’s arrest surfaced.
Indonesia is considering blocking the platform due to inadequate content moderation. Meanwhile, The European Union is reportedly investigating Telegram for allegedly providing false user data.
“Negative sentiment surrounding these legal challenges could continue to weigh on TON’s price.as investors may anticipate further market instability or a distancing from the project,” the analysts anticipated.
Source: Ambito
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