Toncoin Pulls 1 Million New Users amid Telegram CEO Arrest, Bitcoin Crash

Toncoin Price Analysis:

Toncoin price rebounded 10% to reclaim $5.50 on Aug 28, rapidly recovering from the shock 25% dip recorded after French authorities arrested Telegram CEO Peter Durov on Monday.

On-chain data trends show how global anti-censorship discourse around the arrest has sparked investor interest in TON, keeping prices from sliding below $5 mark as may had anticipated.

Bulls Hold above $5 Resistance Despite Market Crash

On Aug 27, the global crypto market descended into a sharp decline, amid a barrage of liquidations and institutional selling. But curiously, while top-ranked crypto assets Bitcoin (BTC) and Ethereum (ETH) have suffered double-digit losses in the last 24-hours, Toncoin has managed to hold steady and outperform the market.

Toncoin’s remarkable resilient performance comes amid bearish headwinds from the shock arrest of Telegram CEO and Co-Founder in France on Aug 26 on multiple charges related to terrorism to money laundering.

Historically, crypto assets embroiled in legal dispute often suffer prolonged period of price downswings. But interestingly, TON has displayed an unusual resilience amid the intense market volatility and widespread liquidations that ensued on Tuesday.

Looking at the TONUSD chart above, Toncoin price had slid 26.83% to hit a 20-day bottom of $5.04 on Aug 27. Notably, TON managed to avert a breakdown below the vital $5 resistance, setting the stage for the rapid 10.57% rebound above $5.50 now observed at the time of writing on Aug 28.

Toncoin Attracts 1M New User Wallets amid Durov’s Arrest

Toncoin’s fortunes are closely tied to Telegram, as both share a common development team, and many projects on the Toncoin blockchain leverage Telegram’s open-source technology.

In essence, Toncoin outperforming the likes of Bitcoin and Ethereum suggests global media buzz and investor interest generated by Durov’s arrest may have triggered unintended bullish tailwinds.

Looking towards the on-chain data trends, the Telegram CEO’s arrest has inadvertently fueled global media attention and investor interest, leading to an influx of new users.

In an indication of this, IntoTheBlock’s “Total Addresses With Balance” chart below, shows a significant spike in the total number of funded addresses holding units of the native coin, TON.

The chart above shows, on Aug 25, prior to Durov’s arrest, Toncoin blockchain network hosted 43.08 million active funded address. But curiously, the figure has since surged by 1 million to reach 44.02 million at the time of writing on Aug 28.

This implies that nearly the number funded TON wallets has grown by 1 million in the last 3-days since Durov’s arrest.

An increase in Funded Addresses implies that there’s an influx of new users, not only joining the network, but also bringing fresh capital inflows. This demand surge, partly explains why TON price managed to avoid a breakdown below $5 amid intense market volatility on Tuesday.

For context, between Aug 1 and Aug 25, Toncoin had only recorded 6 million new funded wallets, showing that the influx of 1 million funded-addresses in the last 3-days is an outlier event.

If this trend persists in the days ahead, TON price is likely to extend its current 10% recovery and edge closer to the $6 mark, as these newly-funded wallets begin to perform economic activity on the Toncoin blockchain network.

TONCOIN Price Forecast: Rocky Road to Reclaim $6

Looking ahead, Toncoin faces a challenging but potentially rewarding path to reclaiming the $6.00 level. The IntoTheBlock’s “Global In/Out of the Money” chart shows that most Toncoin holders acquired their assets at prices ranging between $2.29 and $5.13. This cluster of investors provides a strong support base that prevented the price from breaking below $5.00.

However, resistance levels between $5.80 and $6.73 are represented by significant accumulation clusters, which could slow Toncoin’s ascent.

If the influx of new users and the resulting economic activity on the Toncoin blockchain continues, the price could breach the $6.00 mark. Nevertheless, investors should watch the $5.13 support level closely, as a breach could lead to further declines.