After a notable drop of 20% following the arrest of Telegram CEO Pavel Durov, TON’s price now sits at $5.45. Despite these recent setbacks, analyst Ryan Lee from Bitget Research believes that Toncoin has the potential to outperform the broader cryptocurrency market in September.
Toncoin’s recent decline is attributed to the arrest of Telegram’s founder, Pavel Durov, on August 24. The arrest has ignited concerns and contributed to a significant drop in the token’s value. However, Lee emphasizes that this drop, while substantial, should not be viewed as a catastrophic crash.
“TON’s decline mirrors the broader struggles of the cryptocurrency market,” Lee explained. “Similar to Bitcoin (BTC), which has struggled to maintain its position above $60,000, Toncoin’s recent price movement reflects a wider market trend rather than a severe individual issue.”
As of the latest update, Toncoin is trading at $5.45, down 20% from its previous levels. Despite this, Lee notes that TON has shown more resilience compared to some other major cryptocurrencies. For instance, Ethereum (ETH) has faced a more significant downturn, with its price dropping by 24% over the past month. Currently, ETH is trading at $2,523.
Lee remains cautiously optimistic about Toncoin’s prospects for September. He suggests that, assuming no further negative developments, TON might perform better than the broader market.
“If the negative sentiment surrounding Toncoin does not worsen and if the overall market conditions improve, TON could outperform the general cryptocurrency market in September,” Lee predicts.
Lee points to the resilience of Toncoin amidst recent adversity. Despite the negative news, including Durov’s arrest, the cryptocurrency’s community and ecosystem have remained relatively unified and supportive. This stability has contributed to a cautious yet positive sentiment around the coin.
“Even with significant negative news, Toncoin has shown considerable resilience. This is partly due to the strong support from its ecosystem, which has helped mitigate some of the adverse effects of recent events,” he added.
According to Lee, Toncoin may potentially retest price levels of $6.5 to $7 in the near future. However, he also notes that if market conditions do not improve, the price might fluctuate within a $5 to $6 range.
“TON’s price is likely to stabilize between $5 and $6 if buying activity increases,” Lee suggested. “However, if the market environment remains stagnant, TON may continue to consolidate in this range.”
An examination of Toncoin’s price performance using the Ichimoku Cloud indicator shows that the token is currently trading below the Leading Span A and Leading Span B levels. This positioning indicates a downtrend, with the cloud acting as a resistance level.
Additionally, the Relative Strength Index (RSI) for TON is currently at 38.22, below the neutral 50 mark. This lower RSI reading indicates that selling pressure is currently outweighing buying pressure.
“The RSI below 50 suggests that selling activity is dominating,” Lee explained. “If this trend continues, TON’s price could fall to $4.74, which would challenge the more optimistic projections of $6.5 to $7.”
Despite the current downtrend, there remains a possibility for Toncoin’s price to recover if market conditions shift towards accumulation. Should buying activity increase, TON’s price could rise to approximately $5.57 and potentially reach higher levels.
“If traders begin to accumulate Toncoin, we could see a rebound in its price,” Lee stated. “This recovery could help TON reach and possibly exceed the $6 mark, aligning with our more optimistic projections.”
As Toncoin navigates a challenging period following recent events, the outlook for September remains cautiously optimistic. While the recent price drop poses significant challenges, Toncoin’s resilience and the potential for a market rebound offer hope for a stronger performance in the coming month.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
Get the latest Crypto & Blockchain News in your inbox.
Join Now