Toncoin bounces back above $5, with the next target at $6.19.
Toncoin will return to more than $5 after release from Pavel Durov and public verification. Trading volume rose over 148%, fueling interest in both the spot and futures markets. resistance at $5.51; A breakout could push the ton towards the next target of $6.19.
Toncoin (TON), the native cryptocurrency of the Toncoin blockchain, has experienced significant volatility in recent weeks due to changes surrounding Telegram and its founder Pavel Durov. The coin has rebounded to more than $5 after a sharp decline following Durov's arrest in France.
At the next resistance level at $6.19, investors will be watching closely as technical indicators suggest a short-term bearish sentiment, despite renewed optimism.
Why is the price of Toncoin increasing?
Toncoin has been in turmoil since the arrest of Telegram CEO Pavel Durov in late August. The close relationship between Ton and the popular messaging platform saw the token shed more than 30% of its value in just a few weeks, dropping to $4.45.
The future of Telegram and its impact on Tons caused most of the downward momentum.
However, recent changes have led to a slight price recovery. Durov's release and public announcement of his arrest sparked renewed interest in the property.
In his comments, Durov criticized the French authorities' approach to the arrest and reassured Telegram's 950 million users about the platform's future.
I'm still trying to understand what happened in France. But we hear the concern. I made it my personal mission to prevent abusers of the Telegram platform from interfering with the future of our 950+ million users.
My full post below.
— Pavel Durov (@durov) September 5, 2024
Durov's comments, combined with Telegram's revised privacy policy, which included fixing private chats, gave Ton the boost he needed to get back more than $5.
In addition to the positive sentiment of Durov's release, Toncoin's trading volume increased by over 148%.
Technical analysis of ton price
From a technical analysis perspective, Toncoin's short-term outlook remains bullish. Out of 17 technical indicators, 10 indicate sell and only 2 recommend buy.
Despite a slight recovery, the coin is still below several key exponential moving averages (EMAs), including the 20, 50, 100 and 200-day EMAs. However, it managed to stay above the 10 EMA.
With the recent bullish push above the key $5 level, technical analysis shows that it will face resistance at $5.51, which should be cleared for further upside.
A successful close above $5.51 opens the door to a rally to $6.19.
Conversely, a failure to hold above $5 could see Tons test support at $4.94, and a break below that level could lead to further declines.
