Ton coin (TON), the native crypto currency of The Open Network, has experienced a significant drop in value following the arrest of Telegram CEO Pavel Durov in France. Durov’s arrest over allegations related to Telegram’s content moderation practices has sent shockwaves through the crypto community, severely impacting the market cap of TON and its associated token, Notcoin.

Impact of Pavel Durov’s Arrest on TON:

Pavel Durov, who was recently detained at Paris’ Le Bourget airport upon arriving from Azerbaijan, faces serious charges related to Telegram’s alleged laxity in moderating illegal activities on the platform. The allegations include facilitating fraud, drug trafficking, and other illicit activities. This development has had a profound effect on Ton coin’s price.

Before the news broke, TON was trading around $7. However, the arrest led to a rapid 20% drop, with the price falling to a low of $5.31. This drastic decline resulted in a market cap reduction from over $17 billion to approximately $13.4 billion. Although the price has partially recovered to around $14 billion in market cap, it remains under significant pressure.

Technical Analysis and Market Sentiment:

The technical outlook for TON is concerning. On August 24, the price slipped below its support line within a symmetrical triangle pattern, indicating bearish dominance. Despite attempts by bulls to reverse the trend, as seen with a long tail on August 25, they failed to sustain momentum. The price remains below crucial support levels, with concerns that a further drop could lead to a bearish head-and-shoulders pattern.

Currently, TON’s price struggles to maintain above the $5.25 support level. If the bears manage to push the price below this mark, it could decline further to $4.72, confirming the bearish pattern and potentially signaling more significant losses.

For a potential recovery, TON needs to break above the 20-day Exponential Moving Average (EMA) at $6.34. A successful breach of this level could set the stage for a rise towards the 50-day Simple Moving Average (SMA) of $6.66. However, with Durov in custody and market confidence shaken, this seems a challenging feat.

Impact on Notcoin:

Notcoin (NOT), another cryptocurrency linked to the TON block chain and associated with a “tap-to-earn” game on Telegram, has also been affected by the turmoil surrounding Durov. NOT’s price fell 24%, from $0.012 to $0.0091. Its market cap similarly plummeted, dropping from $1.2 billion to under $950 million.

Future Prospects for TON:

The future for TON and Not coin remains uncertain as the situation develops. The arrest of Pavel Durov has not only impacted Ton coin’s price but has also shaken confidence in the broader ecosystem tied to Telegram.

Investors should closely monitor the unfolding legal situation and any potential developments regarding Durov’s case. Additionally, tracking technical indicators and market sentiment will be crucial in assessing the likelihood of a price recovery for TON.

Conclusion:

Pavel Durov’s arrest has had a significant adverse impact on Ton coin and Not coin, with both cryptocurrencies experiencing substantial price declines. The market’s response reflects the heightened sensitivity to developments involving key figures in the crypto space. As the situation progresses, stakeholders will need to stay informed and adapt their strategies accordingly.