Toncoin and Bitcoin Fail to Meet Expectations as Ethereum Struggles to Break Resistance

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

The price of Toncoin has seen a drastic fall of nearly 20% in a short span of time, dealing a major blow in the market. This sharp drop comes shortly after the arrest of Pavel Durov, the billionaire founder of Telegram and a key figure in Toncoin. While Durov's arrest has come as a shock to communities outside the digital assets realm, the cryptocurrency market is paying closer attention to TON's performance.

At the time of writing, the price of TON is hovering around $5.60, having fallen from highs of close to $7.00 earlier this month. The heavy selling pressure following the news of Durov's arrest has made the steep decline in value even more severe. For a brief period, the cryptocurrency attempted to find some stability around $600, but further losses ensued as this support level snapped. Technical indicators are now suggesting that TON is in a precarious position.

Among the crucial support levels that the cryptocurrency has fallen below are the 200-day and 50-day moving averages, which often act as psychological barriers for traders. The breach of these levels indicates that TON may be facing more downward pressure before finding any substantial support.

The significant increase in trading volume during the sell-off is also raising concerns, suggesting that the drop is being primarily driven by heavy selling rather than a lack of interest in buying. This implies that a large number of investors were eager to offload their holdings, likely out of fear that prices may fall even further. While it is difficult to predict the immediate future of TON, the cryptocurrency is in dire need of some encouraging developments to win back investor confidence.

Bitcoin fails to reach $70,000 again

Bitcoin has faced strong resistance once again as it moved closer to the $70,000 price point. Despite expectations among traders and investors for a breakout considering the previous bullish momentum, Bitcoin fell short of reaching this key psychological level, resulting in a notable decline in price.

The cryptocurrency's price performance over the past few days highlights the obstacles that it faces. Beginning at a peak of $64,600, Bitcoin's upward trajectory stalled, and the price fell to around $63,951 at the time of writing. This drop comes as traders were anticipating Bitcoin's rise toward the $70,000 level, which has been both a target and a resistance point in recent weeks.

There are several potential reasons why Bitcoin is unable to continue its upward trend toward $70,000. First and foremost, it is crucial to recognize the psychological significance of this round number. As traders expect a reversal or correction, they tend to place sell orders at these levels, further building up resistance.

Perhaps a wave of profit-taking was triggered by the failure to breach this resistance level, which accelerated the sell-off. Further indicating that Bitcoin is encountering strong resistance are technical indicators. The 200-day moving average is adding to the resistance as the price tests the upper bounds of a well-established channel.

Lastly, as Bitcoin surged to these heights, the relative strength index (RSI) may have shown that the cryptocurrency was overbought, leading to a natural cooling off as buying pressure fizzled out. With Bitcoin trading just below $70,000, the market attention will likely be on whether it can regain momentum and attempt to breach this key resistance once more.

Ethereum struggling at crucial resistance level

Ethereum is currently facing difficulties in breaking through a key resistance level once again. Trading at around $2,750 at the moment, the digital asset is battling at the 26-day exponential moving average. This level has proven to be a roadblock in Ethereum's attempt to continue its rally. The lack of momentum necessary to push past $2,750 and approach the $3,000 mark is evident in Ethereum's price action of late.

Among its fundamental concerns is the current state of Ethereum's network utilization. According to the network's usage metrics, it is far from being fully loaded despite the recovery in price. This underutilization may be contributing to the absence of buying power required to propel the price higher.

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