Toncoin (TON) Faces a Rangebound Week as Telegram Founder Pavel Durov Gets Arrested
- WBOYOriginal
- 2024-08-31 09:22:22599browse
Toncoin [TON] experienced a tough week. The founder of Telegram, Pavel Durov, was arrested in France and faces a 10-year jail term.
Toncoin [TON] had a difficult week with the founder of Telegram, Pavel Durov, being arrested in France and facing a 10-year jail term. This news impacted the Telegram-based altcoin negatively.
The network also experienced downtime for over seven hours, leading to further erosion of confidence among users. However, the network restoration could reduce the severity of the incident over time.
Did TON form another range?
Source: TON/USDT on TradingView
Back in June and July, Toncoin formed a range with lows at the $6.94 level. Selling pressure in late July pushed prices to fall as low as $4.75, turning the $6.94 level into strong resistance.
The price action of the past month supported this range formation idea. The mid-range level acted as resistance throughout the last week. Another move toward the $5.13 local lows seemed likely.
The RSI showed bearish momentum and the OBV highlighted rising selling pressure. The chances of a Toncoin recovery soon were low, and a move to $5 seemed possible.
Should traders short the token now?
Source: Hyblock
According to AMBCrypto’s findings, the cumulative liq levels delta was in the negative but not overwhelmingly so. This showed that short positions were more than the long ones in recent days.
A short squeeze is possible but unlikely over the next 24–48 hours.
Source: Hyblock Capital
While the daily chart showed the $5.13 level to be a support zone, the liquidity pools could drag TON lower. The $4.92-$5 zone was densely populated with long liquidations.
Once the price sweeps this level, a recovery would become more likely. In the meantime, traders should watch out for minor price bounces that hunt liquidity.
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