Toncoin and Ethereum Encounter Market Challenges Following CEO’s Arrest

The recent period in the cryptocurrency industry witnessed a notable decline, with Toncoin and Ethereum leading the downward trajectory in market values. This shift occurred amid broader adjustments within the digital currency domain.

Simultaneously, the global market capitalization experienced a 3.6% decrease over the past 24 hours, contributing to heightened market volatility exacerbated by the arrest of Toncoin’s CEO, Pavel Durov, in France.

Durov’s apprehension at Le Bourget airport in Paris last Saturday triggered a 20% plunge in Toncoin’s value post-arrest. Sergei Gorev, a Risk Manager at YouHodler, expressed concerns about Toncoin’s technical indicators, indicating a bearish outlook. Gorev pointed out that Toncoin breached its 200-day moving average and is currently trading below it. Furthermore, he highlighted the emergence of a ‘head and shoulders’ pattern on the charts, hinting at potential further downturns for the cryptocurrency, with a projected low of $2.

Despite these challenges, Toncoin maintains its operational autonomy from Telegram, a renowned messaging platform that initially contributed to the development of some of Toncoin’s core technology. To evade regulatory scrutiny, the project transitioned to an open-source model, with The Open Network (TON) assuming development responsibilities and subsequent releases.

The past 24 hours witnessed a notable surge in liquidations across the cryptocurrency market, affecting over 60,287 traders. Total liquidations on centralized exchanges amounted to $144 million, with a substantial $127 million stemming from long positions. Ether also faced significant liquidations, with long positions accounting for $46 million out of the total $48 million liquidated. In Toncoin’s case, long liquidations reached $1.7 million out of $2.5 million.

Ether mirrored the broader market’s decline, experiencing a more than 5% drop. However, this decline was less severe than Toncoin’s over 4% decrease. Bitcoin, the leading cryptocurrency by market capitalization, saw a milder decline of approximately 3%.

The prevailing market conditions present a challenging landscape for major cryptocurrencies like Toncoin and Ethereum. Investors and market observers closely monitor the implications of Durov’s arrest on Toncoin’s future stability and valuation.