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Toncoin (TON), a cryptocurrency tied to the ambitions of the popular messaging platform Telegram, has been at the centre of significant market turbulence and technical challenges in recent weeks.
As the crypto market continues to react to a series of unfortunate events, Toncoin’s future remains a subject of keen interest among investors and analysts alike.
Toncoin’s price dipped following the arrest of Telegram’s founder
Toncoin experienced a sharp 20% drop in value on Sunday following the arrest of Telegram’s founder, Pavel Durov, in Paris, an incident that sent ripples through the crypto community.
Durov was arrested on charges that his messaging app facilitates criminal activities such as money laundering and drug trafficking.
While Telegram has responded by saying that Durov “has nothing to hide” seeing he travels frequently in Europe, French authorities have extended his detention.
Toncoin, which has long been associated with Telegram’s plans to evolve into a “super-app” akin to China’s WeChat, has seen its price plummet to around $5.60.
Toncoin (TON) price chart
The sudden drop highlighted the market’s sensitivity to news and developments surrounding key figures in the crypto space.
Amid this downturn, analysts are monitoring critical technical indicators. In a post on X, topGcrypto, has identified a support trendline for Toncoin to be currently positioned at $5.30 — a crucial level that traders are watching closely.
According to topGcrypto, a breach below this support could signal further declines, while a rebound above the 200-day moving average (MA 200) could pave the way for a recovery, potentially driving the price towards the resistance zone around $8.15.
Binance delays Toncoin network upgrade
Adding to the market uncertainty, Binance, one of the world’s leading cryptocurrency exchanges, has announced delays in the highly anticipated TON network upgrade citing “unforeseen issues.”
The upgrade was anticipated to enhance The Open Network’s (TON) performance.
Service Update!
Our $TON network upgrade is taking longer than expected due to unforeseen issues. Rest assured, our team is working diligently to restore normal service as quickly as possible.
Thank you for your understanding!— Binance (@binance) August 26, 2024
Notably, the delay in Binance’s TON network upgrade comes as the exchange faced some technical challenges which have since been addressed.
This issue has now been resolved. 💪
Keep building.— Binance (@binance) August 26, 2024
These delays have had a tangible impact on TON holders. With deposits and withdrawals temporarily suspended, continue to face market uncertainty and potential financial consequences amid volatile price movements.
Compounding the challenges, a significant liquidity provider today removed all their liquidity from Toncoin and sold 356,545 $TON, worth approximately $1.98 million, at $5.57.
The sale was executed within a short span of four hours, raising concerns about market stability and liquidity in the near term.
Notably, the address associated with this transaction has been noted by observers as a key player in recent market dynamics.
A $TON liquidity provider removed all liquidity of $TON and sold 356,545 $TON($1.98M) at $5.57 in the past 4 hours. #TONCOIN
Address:
0xaba6b18cbcd388745f6b0de936495cb90dbc80d2 pic.twitter.com/rS98WwXYOy— Lookonchain (@lookonchain) August 26, 2024
Looking ahead
Despite the current headwinds, Toncoin’s long-term prospects remain intertwined with Telegram’s strategic vision.
With a user base of over 900 million monthly active users, Telegram’s plans to integrate Toncoin for in-app payments and gaming experiences could unlock significant value.
If the current technical and market challenges are navigated successfully, Toncoin could regain momentum and reestablish itself as a key player in the evolving cryptocurrency ecosystem.
Investors and users alike are watching closely as Binance works to resolve the ongoing network issues and as the market assesses the long-term implications of recent events.
The post Toncoin (TON) woes exacerbated as Binance delays network upgrade appeared first on Invezz
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