The cryptocurrency sector saw a significant dip recently, as both Toncoin and Ethereum led a downward trend in market values. This adjustment came amidst broader corrections within the digital currency world.
This drop occurred alongside broader corrections within the digital currency sector, with global market capitalization decreasing by 3.6% in the past 24 hours. Additionally, the market’s volatility has been further intensified by the arrest of Toncoin’s CEO, Pavel Durov, in France.
Durov was apprehended last Saturday upon his arrival at Le Bourget airport in Paris. Consequently, the value of Toncoin plummeted by 20% following his arrest. According to Sergei Gorev, a Risk Manager at YouHodler, Toncoin’s technical indicators are less than promising.
“Toncoin has broken through its 200-day moving average and remains below it,” Gorev explained. Additionally, he highlighted a developing ‘head and shoulders’ pattern on the charts, suggesting potential further declines for the cryptocurrency, possibly reaching as low as $2.
Despite these challenges, Toncoin continues to maintain its operational independence from Telegram, the popular messaging platform. Initially, Telegram had a hand in developing some of Toncoin’s underlying technology.
However, to avoid regulatory scrutiny, the project was later open-sourced, and The Open Network (TON) assumed responsibility for its development and subsequent release.
In the last 24 hours, the cryptocurrency market has seen a significant increase in liquidations, with over 60,287 traders affected.Total liquidations across centralized exchanges hit $144 million, with a staggering $127 million stemming from long positions.
Ether saw significant liquidations too, with long positions constituting $46 million of the total $48 million in liquidations. In the case of Toncoin, long liquidations reached $1.7 million out of $2.5 million.
Ether’s performance also mirrored the broader market’s downturn, falling by over 5%. However, this was still less severe than the losses faced by Toncoin, which dropped by more than 4%. Bitcoin, the largest cryptocurrency by market capitalization, saw a smaller decrease of about 3%.
The existing market circumstances depict a tough scenario for major cryptocurrencies such as Toncoin and Ethereum. Investors and market spectators are closely monitoring the developments surrounding Durov’s arrest and its potential implications on Toncoin’s future stability and valuation.
Also Read: Toncoin Price Drops 7% in 24 hours amid CEO Durov Faces’ Arrest in France
