Toncoin and Ethereum Market Challenges
The world of cryptocurrency has been tumultuous recently, with Toncoin and Ethereum experiencing notable declines in their market values. This downward trend was part of a larger correction happening across the digital currency sector.
Impact of Global Market Corrections
The overall global market capitalization has decreased by 3.6% over the past day. This volatility was further exacerbated by the arrest of Toncoin's CEO, Pavel Durov, in France. His apprehension occurred last Saturday at Le Bourget airport in Paris, causing a 20% drop in Toncoin's value.
Technical Analysis of Toncoin
According to Sergei Gorev, a Risk Manager at YouHodler, the technical indicators for Toncoin are showing warning signs. “Toncoin has broken through its 200-day moving average and remains below it,” Gorev noted. He also pointed out a developing ‘head and shoulders’ pattern, which could indicate further potential declines, possibly down to $2.
Toncoin's Independence from Telegram
Despite these setbacks, Toncoin continues to operate independently from Telegram, the widely-used messaging service. Initially, Telegram helped develop some of the technology behind Toncoin. To steer clear of regulatory issues, the project was later open-sourced, with The Open Network (TON) taking over its development.
Widespread Liquidations in the Market
In the past 24 hours, the cryptocurrency market faced substantial liquidations, affecting over 60,287 traders. Total liquidations on centralized exchanges amounted to $144 million, with a significant $127 million in losses from long positions.
Ethereum's Market Performance
Ethereum also faced challenges, with long position liquidations reaching $46 million out of a total $48 million. Ethereum's market value fell by over 5%, a decline still less than the over 14% drop seen by Toncoin.
Bitcoin's Relative Stability
Meanwhile, Bitcoin, the largest cryptocurrency, experienced a smaller decline of approximately 3%. This illustrates the current tough market scenario for major cryptocurrencies like Toncoin and Ethereum.
Investor Outlook Amid Durov's Arrest
The arrest of Durov has raised concerns about its potential impact on Toncoin's future stability and valuation. Investors and market observers are watching closely to see how this situation unfolds.
