Toncoin (TON) has faced significant turmoil over the past five days following the arrest of Telegram co-founder and CEO Pavel Durov in Paris. The close ties between Toncoin and Telegram have caused a strong reaction in the market, with the price of TON plunging more than 25% since Saturday’s event.
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This sudden drop has left many holders in distress, uncertain about the future of the token. However, while opinions among analysts and investors vary, some see this as a potential opportunity.
TThey argue that TON may be entering a reaccumulation zone, presenting an opportunity for savvy investors to buy at lower prices before the market stabilizes. As the situation unfolds, the focus remains on whether Toncoin can recover from this setback and regain its previous momentum.
Toncoin in the accumulation zone
Toncoin (TON) is currently trading at the same levels it was at earlier in the month, when the broader cryptocurrency market was facing significant selling pressure. This pullback has caught the attention of several analysts and traders who believe it represents a strategic opportunity to accumulate TON at a discounted price.
Coin Signals, a well-known crypto analyst group in X, has shared a graph analysis indicating that Toncoin is potentially in a reaccumulation phase. According to their analysis, current price levels could offer a 3x to 5x return if market conditions align favorably. They argue that the recent price drop, triggered by the arrest of Telegram co-founder and CEO Pavel Durov, may have been an overreaction, creating a buying scenario for those willing to take the associated risks.
However, it is important to note that while there is potential for substantial gains, significant risks are associated with this project, especially in light of recent events. The uncertainty surrounding Telegram and its impact on Toncoin adds an extra layer of complexity for investors. As with any investment, thorough research and risk management are crucial before making any decisions.
TON Price Action
Toncoin (TON) is trading at $5.48 after enduring five days of aggressive selling pressure. In the past 12 hours, the price has recovered around 6%, finding resistance at the $5.04 mark, which has been a key demand level over the past month. This price reaction indicates that the bulls are trying to regain control, but a trend reversal is far from confirmed.
For a more definitive change in momentum, the price needs to break above and hold above the 4-hour exponential moving average (EMA), an indicator that signifies strength in price action. The 4H 200 EMA is currently positioned at $6.41, a significant 18% above the current price. Breaking above this level would be a strong bullish signal.
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However, if selling pressure persists, there is notable liquidity below the March low of $4.50. If the price continues to decline, this level will likely act as the next support, making it a critical zone for the bulls to defend.
Featured image by Dall.E, chart by TradingView