Toncoin (TON) Price Prediction 2022: Will TON Bottom Out Before $5 After Pavel Durov's Arrest?

With a streak of three-day falls, Toncoin, under extreme selling pressure, warns of an extended downfall. Will the downfall in Toncoin bottom out before $5?

Telegram CEO Pavel Durov's arrest at a French airport over the weekend has crashed the TON token prices.

Following the arrest, Toncoin has lost the $6 support and dropped 16% in market cap. As the bearish phase continues, will Toncoin prices continue to fall this week?

Telegram Reacts To Durov’s Arrest

In a surprising move that dampened the bullish hopes for Toncoin, French police turned the tides with the arrest of Telegram’s CEO Pavel Durov. Being the native currency of The Open Network (TON), previously known as Telegram Open Network, Durov’s arrest quickly plunged Toncoin.

According to reports, Durov's alleged failure to mitigate and communicate about the illegal activities over Telegram was the main reason for his arrest. It is not new that Telegram is quite famous among the harmful elements, but the messaging app follows the Digital Services Act of the EU.

Recently, Telegram highlighted its moderation as being at par with the industry standards with regular updates. Moreover, Telegram questions the platform or its owner’s responsibility for its abuse.

As the user base expands to almost a billion globally, Telegram also mentioned its platform being crucial for communication and information sources.

Toncoin Breaks Under $6

After hitting an all-time high of $8.28, Toncoin slipped to $5.28 near the 200-day moving average as the broader market crashed in early August. However, in a V-shaped recovery, Toncoin prices soared with hopes to reach $10 once again.

Durov’s arrest led to an 11.49% drop in Toncoin on Saturday, contributing to a total decline of 16% since then. This downturn began from an overhead trendline and the 50-day moving average, forming a new lower high. Consequently, there is a possibility of a bullish recovery.

On the daily chart, a breakdown below $5.94 could lead to a retest of the $4.86 support formed in early August, marking a 13% slip from the current price.

Currently, Toncoin trades at $5.63 with a2.25% intraday loss, forming the third consecutive bearish candle. Moreover, the altcoin fails to find support at the 200-day moving average and trades below it. A closing below the average line will siren a bearish signal.

What's Next For Toncoin?

Following Durov’s arrest, any negative development in the case will further deteriorate the market value of Toncoin. In the recent fall, Toncoin’s market cap slipped below Tron, dropping to the 10th rank in the crypto market.

With the next support at $4.86, the downfall will likely retest the level with a long-tail formation. However, a breakdown can find the next bouncepads at $4.34 and $3.56.

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