How Pavel Durov’s Arrest Influences Toncoin (TON) Value

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The Impact of Durov’s Arrest on Toncoin Value

The arrest of Telegram founder Pavel Durov has led to a consistent decline in the value of Toncoin (TON). Despite the turbulent situation, traders have spotted an opportunity to buy the token at a lower price. Let’s examine how Durov’s arrest has impacted Toncoin and if it’s a good time to invest in TON.

Investment Opportunity for Toncoin Buyers

An analysis of Toncoin’s Market Value to Realized Value (MVRV) ratio suggests that this could be an opportune moment to purchase the cryptocurrency. According to Santiment, the 7-day and 30-day MVRV ratios are -5.71% and -9.10%, respectively. Negative MVRV values indicate that the cryptocurrency is currently undervalued. Traders often use this metric to buy assets at lower prices and sell them at higher rates later. Meanwhile, the TON derivatives market remains robust. Increased open interest (OI) in cryptocurrency futures and positive funding rates on exchanges show that trader confidence is stable. At the time of writing, the OI for Toncoin futures stands at $345 million, which is a 46% increase since Pavel Durov’s arrest. Additionally, the funding rate is 0.0074%. Values above zero suggest that traders expect the cryptocurrency’s price to rise soon.

TON Forecast: Bearish Trends Prevail

Currently, TON is trading at $5.42, reflecting a 2% drop over the day. Over the last week, the token has lost more than 20% of its value. The news of Pavel Durov’s arrest negatively influenced the altcoin. Following the unexpected event, the sentiment among Toncoin spot traders turned bearish. Technical indicators also point to the dominance of sellers over buyers. For instance, the Directional Movement Index (DMI) shows that the +DI indicator has fallen below the -DI indicator, indicating a strong downtrend and selling pressure on the asset. The Relative Strength Index (RSI) for the token also highlights a bearish scenario. Since Durov’s arrest, the RSI has dropped from a neutral 50 to 36.98, nearing the oversold zone. This suggests increased selling activity. If the selling pressure continues, Toncoin’s value may fall to $4.73. On the other hand, if buyers step in, the price of TON could rise to $5.47.