Toncoin (TON) Nosedives 20% as Telegram CEO Pavel Durov Gets Arrested in France

Toncoin (TON), the native token of The Open Network, has been getting hammered, dropping 20% after Telegram's CEO, Pavel Durov, got himself arrested in France.

Toncoin (TON), the native token of The Open Network, took a beating after news emerged that Telegram CEO Pavel Durov was arrested in France.

The cryptocurrency dropped by 20% following the arrest, which was linked to charges against Telegram over its alleged failure to moderate content effectively.

According to CoinGecko data, TON was trading at around $7 before the news broke, but it quickly tanked to a low of $5.31.

The sharp decline in the coin's value led to a significant decrease in its market capitalization, which crashed from over $17 billion to around $13.4 billion.

Despite a slight rebound that brought the market cap back up to about $14 billion, TON's fate remained closely intertwined with Telegram's legal troubles.

Technical analysis of the TON chart showed that the coin slipped below its support line in a symmetrical triangle pattern on August 24, indicating bearish pressure.

The chart also highlighted a long tail on August 25, suggesting attempts by bulls to bounce off a $5.25 support level, which ultimately failed.

If the bears succeed in pushing the price below $5.25 again, the token could potentially slide further to $4.72, which would confirm a bearish head-and-shoulders pattern.

However, a break above the 20-day Exponential Moving Average (EMA) at $6.34 could indicate a bullish move towards the 50-day Simple Moving Average (SMA) of $6.66.

Another cryptocurrency, Notcoin (NOT), which operates on the TON blockchain and is tied to a "tap-to-earn" game in Telegram, also faced a decline of 24%.

The coin dropped from $0.012 to $0.0091, and its market capitalization fell from $1.2 billion to below $950 million.

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