Toncoin Sinks 16% After CEO Arrest But TON’s Bullish Signals Still Shine
How Will Pavel Durov's Arrest Affect TON Price? | Credit: Getty Images
Key Takeaways
- The Toncoin (TON) price fell over 20% in the late hours of Aug. 25.
- The price of Toncoin trades inside a long-term symmetrical triangle.
- Can Toncoin break out despite the negative sentiment around it?
The price of TON has fallen since its all-time high of $8.29 on June 15. After reaching a low on Aug. 5, the TON price for nearly 20 days.
On Aug. 24, Telegram CEO Pavel Durov was arrested in France on charges that his application facilitates money laundering and drug trafficking.
TON, which is the native token of Telegram, plunged over 20% shortly after the announcement.
Will this have a long-term impact on the TON price, or is the Toncoin trend still bullish despite the negative sentiment?
Pavel Durov Arrest Sparks Drop
The news of Pavel Durov’s arrest has sent shockwaves across social media, igniting a fierce backlash against what many see as a blatant attack on free speech.
In a remarkable show of solidarity, thousands of users have taken to buying TON tokens on the open market, driving up demand and defying the uncertainty surrounding Durov’s detention.
The hashtag #FreePavelDurov has taken Twitter by storm, and an account dedicated to the cause has already amassed over 10,000 followers.
Tech moguls like Elon Musk , CEO of X, have voiced their support, warning that Durov’s arrest sets a dangerous precedent for the loss of free speech if he is not released.
Chris Pavlovski , the CEO of video streaming platform Rumble, shares a similar sentiment and announced he has departed Europe for this reason.
Nevertheless, the TON price has recovered slightly in the day since the arrest.
Will Toncoin Recover?
The most likely wave count implies that TON is in wave four of a long-term five-wave increase that started in May 2022. The wave has formed a symmetrical triangle, the most common pattern for wave four.
The sub-wave count is in black, implying TON is in sub-wave B.
If the count is accurate, the price of TON will continue consolidating for the rest of the year before an eventual breakout toward $10.77. The 4.61 extension of wave on gives this target, which represents a new all-time high.
The bearish scenario (yellow) still suggests that TON is in wave four, but that is developing into an A-B-C corrective structure instead.
Even in this scenario, TON will increase toward the triangle’s resistance trend line and complete the B sub-wave before an eventual breakout takes it toward $4.
As it stands, Toncoin’s bullish possibility is more likely. A breakout from the triangle will confirm this outlook, paving the way for a new all-time high.
