Telegram Coins Lead Losses as TON and NOT Drop 10%
TON and NOT are the biggest losers today as the market makes a downturn. Is more downside ahead?
Key Takeaways
- TON has formed a five-wave downtrend since mid-August.
- Telegram-related tokens have declined following the CEO’s arrest.
- NOT approaches critical support; downside risk to $0.0040.
The cryptocurrency market started a recovery on Monday, Sep. 2, but the momentum was short-lived, ending yesterday. It took a downturn, falling 7.24% at its maximum, and some cryptos have been affected more than others.
Considering the fear, uncertainty, and doubt about Telegram CEO Pavel Durov’s arrest, Telegram-related tokens TON and NOT have declined the most, marking roughly a 10% price decrease in the last 24 hours.
As the market turns bearish, what are the outlooks for the price of these cryptocurrencies?
TON Price Analysis
TON has formed a five-wave downward pattern since Aug. 14. The recent recovery by Aug. 28 represents the corrective fourth wave, suggesting the final descending move may be nearing completion. A descending resistance line has formed, keeping TON in a downtrend. In combination with a horizontal support zone, a descending triangle is emerging. With the price nearing the triangle’s apex, a breakout was expected.
In CCN’s previous analysis, we questioned whether or not this $5 area would hold as support, pointing out that its lower level is at $4.80. However, the seller’s pressure was stronger, pushing the price below this mark and leaving more downside room.
Projecting our targets with the Fibonacci extension tool can help us anticipate potential ending points. The first likely stopping point could be $4.46, but we are more likely to see an interaction with the 1.618 level at $4.15.
NOT Price Analysis
The price of NOT started its next major downtrend on July 20 at a high of $0.018 after a sideways movement. A descending triangle formed, with the next support level approaching as the price fell to $0.0074 earlier today, Sep. 4.
There are two scenarios that could play out for NOT. The price could find support at the descending level and consolidate around the triangle’s apex before breaking out to the upside. But, if it passes through it, NOT could face a larger drop moving forward, with its next potential stopping point at $0.0040. This would be the same length as the move from July 20 to Aug. 5.
