The recent arrest of France’s Telegram co-founder has led to a notable decline in the price of TON Coin. This reaction is expected given TON Coin’s deep integration with Telegram, making it particularly sensitive to developments related to the messaging platform. After Pavel Durov’s release, the price of TON Coin began to show signs of recovery. Analysts have now updated their price predictions in light of these events.
How Did TON Coin React?
In the past 24 hours, TON Coin’s price surged by nearly 7%, rebounding from its earlier decline following the co-founder’s arrest. The market’s apprehension stemmed from fears that Telegram might face a ban or sanctions in the European Union, thereby negatively affecting the platform and its associated cryptocurrency. The success of the TON Coin ecosystem is closely tied to Telegram’s vast user base, which boasts over 900 million monthly active users. Access NEWSLINKER to get the latest technology news.
Altcoins within the TON Coin ecosystem, such as DOGS and NOT, quickly amassed millions of users, an extraordinary feat largely attributed to Telegram’s mini app model. Durov’s release on bail does not mark the end of the legal proceedings, suggesting potential for continued price volatility. Investors should brace themselves for possible fluctuations as the case progresses.
What Are Analysts Predicting?
Bitget Research Chief Analyst Ryan Lee suggests that the TON Coin price may benefit from improved market sentiment. Despite excessive selling driven by the legal case and broader economic factors, Lee forecasts recovery targets ranging from $6.5 to $7. Conversely, in a negative scenario, he expects consolidation between $5 and $6. Presto Research analyst Min Jung highlighted that over 40% of Telegram’s 2023 revenue came from integrated wallet and collection sales involving Toncoin, demonstrating its significant role in the company’s operations.
Analysts’ Key Insights
The following key insights were drawn from analyst discussions:
- The arrest of Telegram’s co-founder has had a substantial impact on TON Coin’s value.
- Recovery projections for TON Coin range between $6.5 and $7, according to analysts.
- The case’s developments and market sentiment will influence short-term price stability.
Crypto analyst Tony indicated a buying interest if the $5.1 level solidifies as support, with bearish targets at $4.41 and bullish peaks above $7. As the situation unfolds, investors should stay alert to further legal and market developments affecting TON Coin’s price trajectory.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/telegram-arrest-triggers-ton-coin-plunge