Toncoin has experienced a significant decline in value, dropping 20% since the arrest of Telegram CEO Pavel Durov on August 24. Currently trading at $5.45, the digital asset has struggled amid market pressures. However, Bitget Research Chief Analyst Ryan Lee suggests that Toncoin could outperform the broader market throughout September, despite its recent downturn. Lee asserts that the drop in TON’s price following Durov’s arrest does not indicate a severe collapse.
Market Sentiment and Toncoin’s Performance
Ryan Lee noted that the double-digit decline in Toncoin’s value is parallel to Bitcoin‘s performance, which has also faced difficulty surpassing the $60,000 mark. Surprisingly, TON has shown a stronger performance compared to Ethereum. Ethereum has seen a 24% decrease over the past month, trading at $2,523, while TON has demonstrated notable resilience despite negative news.
Lee highlighted that the community’s support and unity within the TON ecosystem contributed to its resilience. Despite the negative publicity surrounding Durov’s arrest, the ecosystem has not witnessed significant fear, uncertainty, and doubt (FUD) on social media.
Technical Analysis of TON
A detailed examination of TON’s daily chart suggests potential short-term declines. The altcoin trades well below the Leading Span A and Leading Span B of the Ichimoku Cloud indicator, indicating a bearish trend. This indicator identifies trends, support and resistance levels, and potential market reversals. Trading below the cloud suggests that sellers are currently dominating the market.
The Relative Strength Index (RSI) for TON is also on a decline, currently at 38.22, which is below the 50-neutral line. This suggests that selling pressure is outweighing buying pressure among market participants. Should this trend continue, TON’s price might fall to $4.74, contradicting Lee’s bullish forecast of $6.5 to $7.
Key Takeaways
- Toncoin’s value has decreased by 20% since Pavel Durov’s arrest.
- Analyst Ryan Lee posits that TON could outperform the market in September.
- Despite negative news, TON shows significant resilience and trades below key technical indicators.
- Current technical analysis suggests further short-term declines for TON.
In conclusion, while Toncoin has faced significant challenges, its resilience and community support provide a bullish outlook according to some analysts. However, market indicators suggest cautious optimism, with potential short-term declines still on the horizon.
