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The price of Toncoin fell by almost 20% in a brief period of time, resulting in a major market blow. Pavel Durov, the billionaire founder of Telegram and a significant figure in Toncoin, was arrested shortly before this drop. Although Durov's arrest was a shock for communities outside of the digital assets world, the cryptocurrency market is focused even more on TON's performance.
As of writing, the price of TON is approximately $5.60, having fallen from highs close to $7.00 earlier this month. The strong selling pressure that followed the announcement of Durov's arrest has made the abrupt decline in value even more severe.
For a brief while the cryptocurrency made an attempt to level off around $600 but further losses resulted from that support snapping. Technical indicators indicate that TON is in a risky situation right now.
The 200-day and 50-day moving averages, which frequently serve as psychological barriers for traders, are among the important support levels that the cryptocurrency has broken below. The breaking of these levels suggests that before TON finds any real support it may experience more downward pressure.
Concerns are further raised by the notable increase in trading volume that occurred during the sell-off, suggesting that heavy selling rather than a lack of interest in purchases was the primary cause of the decline.
This implies that many investors were keen to sell their holdings, probably because they were afraid that prices would drop even further. Even though it is difficult to forecast TON's immediate future, the cryptocurrency desperately needs encouraging developments to win back investor trust.
Bitcoin failed to reach $70,000
Bitcoin has recently faced strong opposition as it has gotten closer to the $70,000 threshold. Though traders and investors were expecting a breakthrough due to the previous bullish momentum, Bitcoin has not reached this crucial psychological level, which has resulted in a significant price decline.
The obstacles that the cryptocurrency faces are highlighted by its price performance over the last few days. Bitcoin's rising trajectory started to stall after hitting a peak of $64,600; at this point, the price is down to about $63,951. As Bitcoin got closer to the $70,000 mark, which has been both a target and a barrier in recent weeks, this decline highlights the lack of buying conviction among traders.
There are a number of possible reasons why Bitcoin is not able to continue its upward trend toward $70,000. Above all, it is important to recognize the psychological significance of this round number. Because they expect a reversal or correction, traders frequently place sell orders at these levels, which further builds resistance.
Perhaps a wave of profit-taking was sparked by the failure to break through this barrier, which accelerated the decline. Further evidence that Bitcoin is encountering strong resistance comes from technical indicators. The 200-day moving average is offering more resistance as the price tests the upper bounds of a well-established channel.
Bitcoin may have been overbought during its recent surge, according to the relative strength index (RSI), which could have caused a natural cooling off as buying pressure decreased. With Bitcoin trading just below $70,000, the market's attention will probably turn to whether it can regain momentum and break through this crucial barrier once more.
Ethereum in difficult position
Ethereum is presently having a lot of difficulty breaking through a critical resistance level. Currently trading at about $2,750, the digital asset is battling at the 26-day exponential moving average. The difficulty of Ethereum in breaking through this level suggests that there may be more consolidation or even a possible reversal in the market.
Although Ethereum has recovered from its lows, the price action of late suggests that there isn't the momentum necessary to move past $2,750 and approach the $3,000 mark.
The current state of Ethereum's network is among its fundamental problems. The network's usage metrics indicate that it is far from fully loaded even with the price recovery. The underutilization may be a factor in the absence of purchasing power required to raise the price.
Dan Burgin
U.Today Editorial Team
