Toncoin bounces back above $5, next target at $6.19
Toncoin rebounds above $5 after Pavel Durov’s release and public reassurance.
Trading volume has surged by over 148%, boosting interest in both spot and futures markets.
Resistance at $5.51; a breakout could push TON to its next target of $6.19.
Toncoin (TON), the native cryptocurrency of the Toncoin blockchain, has experienced significant volatility in recent weeks, driven by developments surrounding Telegram and its founder Pavel Durov. After a sharp price drop following Durov’s arrest in France, the coin has rebounded above $5.
With its next resistance level at $6.19, investors are watching closely as technical indicators suggest a short-term bearish sentiment, despite renewed optimism.
Why is Toncoin price rising?
Toncoin faced a tumultuous period following the arrest of Telegram CEO Pavel Durov in late August. The close association between TON and the popular messaging platform resulted in the token shedding over 30% of its value in a matter of weeks, dropping as low as $4.45.
Concerns over the future of Telegram and its potential impact on TON drove much of the downward momentum.
However, recent developments have led to the slight price recovery. Durov’s release on parole and his public statements addressing the arrest have sparked renewed interest in the asset.
In his comments, Durov criticized the French authorities’ approach to his 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 concerns. I made it my personal goal to prevent abusers of Telegram’s platform from interfering with the future of our 950+ million users.
My full post below. https://t.co/cDvRSodjst
— Pavel Durov (@durov) September 5, 2024
Durov’s comments, combined with a revamped Telegram privacy policy that includes moderating private chats, have given TON the boost it needed to bounce back above $5.
In addition to the positive sentiment from Durov’s release, Toncoin’s trading volume surged by over 148%, reflecting increased activity in both spot markets and perpetual futures.
TON price technical analysis
From a technical analysis perspective, Toncoin’s short-term outlook remains bearish. Out of 17 technical indicators, 10 are signaling a sell, while only 2 recommend a buy.
Despite the slight recovery, the coin is still below several key exponential moving averages (EMAs), including the 20, 50, 100, and 200-day EMAs. However, it has managed to stay above the 10 EMA.
While the recent bounce pushed TON above the key $5 level, technical analysis suggests that it faces resistance at $5.51, which must be cleared for further upward movement.
A successful close above $5.51 will open the door to a potential rally toward $6.19.
Conversely, failure to hold above $5 may see TON test its support at $4.94, with further declines likely if it breaks below that level.
The post Toncoin bounces back above $5, next target at $6.19 appeared first on CoinJournal.
