Toncoin (TON) has faced a notable downturn recently, with its value plummeting by 20% since the arrest of Telegram CEO Pavel Durov on August 24. The token is currently trading at $5.45. Despite this significant drop, analyst Ryan Lee from Bitget Research remains optimistic about Toncoin’s future performance, suggesting that it may outperform the broader market in the upcoming month. This outlook comes even as TON navigates through a series of negative news cycles and technical challenges.

Famous Figure Comments on Toncoin

Ryan Lee, Chief Analyst at Bitget Research, has weighed in on the recent turbulence affecting Toncoin. According to Lee, the recent 20% decline in TON’s price is not indicative of a fundamental collapse but rather a reflection of broader market conditions. He draws parallels between TON’s performance and Bitcoin’s recent struggles, highlighting that both assets have faced difficulties in maintaining upward momentum.

Lee points out that despite the negative impact of Durov’s arrest, Toncoin has demonstrated resilience. “The recent dip in TON’s price has been notable, but it hasn’t experienced a catastrophic collapse,” Lee explains. He emphasizes that, even amid the negative news, Toncoin’s performance has been relatively strong compared to other major cryptocurrencies.

In contrast, Ethereum has faced a 24% decline over the past month, trading at $2,523, which underscores the challenging market conditions. Lee’s analysis suggests that Toncoin’s performance has outpaced Ethereum’s downturn, highlighting its relative strength in a turbulent market.

“Despite the unfavorable news surrounding Telegram’s founder, Toncoin has shown a remarkable level of resilience and recovery,” Lee states. “Over the past 30 days, its decline has been comparable to Bitcoin’s while outperforming Ethereum significantly.”

TON Chart Analysis

Analyzing Toncoin’s price chart reveals a mixed outlook for the cryptocurrency. Currently, TON is trading below key indicators, including the Leading Span A and Leading Span B of the Ichimoku Cloud. This cloud-based indicator is crucial for determining market trends, support, resistance levels, and potential reversals.

Being below the cloud suggests a bearish trend, where the cloud acts as a resistance level, and sellers dominate the market. This positioning reflects the ongoing pressure on Toncoin’s price and indicates that the token is struggling to break through significant resistance levels.

Moreover, the Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, is currently at 38.22. This figure is below the neutral 50 mark, signaling that selling pressure exceeds buying pressure. If this trend continues, Toncoin’s price could potentially fall to $4.74, which would challenge Lee’s optimistic forecast of a rebound to between $6.50 and $7.

Despite these technical indicators, Lee remains positive about Toncoin’s potential. He attributes this optimism to the strong support within the TON ecosystem, including its founders, projects, and community. This unity, according to Lee, has prevented the spread of fear, uncertainty, and doubt (FUD) that could otherwise undermine the token’s market position.

Conclusion

While Toncoin has experienced a significant drop in value recently, largely driven by the arrest of Telegram CEO Pavel Durov, analyst Ryan Lee remains hopeful about its prospects. Despite trading below key technical indicators and facing a bearish trend, Toncoin’s resilience and relative outperformance compared to Ethereum provide a foundation for potential future gains. As the market navigates these turbulent times, Toncoin’s ability to maintain its position and potentially recover could make it a standout performer in the months ahead.