Toncoin Faces Make-or-Break Moment After Tanking 14%: Will $5 Support Hold the Line?
TON price finds itself at $5 for the third time since Aug. 5, but will it hold this time?
Key Takeaways
- Pavel Durov’s arrest caused a 25% drop in TON’s price.
- TON experienced two major outages, raising network stability concerns.
- TON’s price may rebound if support at $5 holds.
The crypto world was left reeling over the past week as Pavel Durov, the CEO of Telegram, was arrested on Saturday, Aug. 24.
The news sent the price of Toncoin (TON) crashing down by 25%, taking it to $5 on Monday, Aug. 26.
However, in a surprise move, TON has since stabilized above this level. The question now is whether this show of strength from buyers will be enough to turn the tide or if it’s just a temporary pause before the next slide.
TON Network Experiences Outage
On Aug. 27, TON suffered a crippling outage, bringing block production to a grinding halt for several hours. While Pavel Durov’s arrest just days prior might have seemed like the obvious culprit, the true cause of the chaos lay elsewhere.
The real perpetrator was the memecoin DOGs, whose sudden surge in popularity sparked a frenzy of minting activity that overwhelmed the network.
As the system buckled under the pressure, Toncoin officials were forced to issue an emergency appeal to validators, urging them to update their nodes and restore stability.
The incident has sparked a wider reckoning about the network’s scalability and resilience in the face of unexpected demand.
As the Toncoin community struggles to recover from the outages, a growing chorus of voices is calling for more robust governance and technical infrastructure to prevent such disruptions from happening again.
TON Price Analysis
TON’s impressive rally to an all-time high of $8.25 on June 15, marking an 8.7% gain from its previous peak on April 11, has given way to a corrective phase.
The subsequent pullback has sparked concerns about the sustainability of the uptrend.
On Aug. 5, Toncoin dropped to its May 1 low of $4.70, where it found support. The price rebounded to a high of $7.20 on Aug. 14 but started experiencing resistance and was sent downward.
After bouncing back from the $5 area on Aug. 26 and briefly reclaiming the $6 price level on Aug. 28, TON hin returned to this critical horizontal level, leaving investors wondering if the digital asset can regain its footing and resume its upward march.
Will TON Hold Above $5?
Zooming into the hourly chart, we can see that from Aug. 14, TON made a five-wave pattern to the downside. Its recent recovery until Aug. 28 was the corrective wave 4, meaning the last descending move could be its ending wave.
A descending resistance level has formed, and TON remains in a downtrend, but a confluence of technical indicators suggests that a breakout is imminent, with the upside looking increasingly likely.
The hourly chart’s MACD has formed a golden cross, signaling a bullish momentum shift, while the RSI has risen, indicating improving strength.
Moreover, the horizontal zone, which has provided robust support in the past, provides a solid foundation for a potential upside move.
If the price breaks out to the upside, TON could recover to $6 again.
However, if it continued moving downward, the zone’s lower level of $4.80 could be its next point of interaction. Only if it passes through this lower level could we start to consider TON’s further price depreciation.
Toncoin Sinks 16% After CEO Arrest But TON’s Bullish Signals Still Shine
