TON Price Action Turns Bearish Following the Controversial Arrest of Telegram Founder Pavel Durov

The Toncoin (TON) network, a fast-growing layer one chain, has exploded with on-chain activity following the controversial arrest of Telegram founder Pavel Durov

Telegram founder Pavel Durov was arrested over the weekend by the French authorities at the Le Bourget airport. This news sparked fears of a possible impact on the Toncoin (TON) network, a fast-growing layer one chain.

Amid these concerns, TON price has recently seen a sharp decline. The large-cap altcoin, which has a fully diluted valuation of about $28 billion and a daily average traded volume of around $1.3 billion, closed last week at about $5.8, down over 18 percent.

If we take a closer look at the price chart, it is evident that TON bears are in control and that further bearish pressure is likely to continue. Moreover, TON price, against the US dollar, in the weekly time frame saw the Relative Strength Index (RSI) drop below the 50 percent level for the first time since February.

A $TON liquidity provider removed all liquidity of $TON and sold 356,545 $TON($1.98M) at $5.57 in the past 4 hours. #TONCOIN

Address:0xaba6b18cbcd388745f6b0de936495cb90dbc80d2 pic.twitter.com/rS98WwXYOy

While some investors have opted to show support for Durov through direct investment of TON and its projects, on-chain data shows a liquidity provider has opted to exit the market. Precisely, Lookonchain identified a liquidity provider who sold more than 356k TON, valued at nearly $2 million, earlier today.

However, it is crucial to note that the decision of one sole liquidity provider cannot be extrapolated to other entities unless a pattern is established. Moreover, TON has more than $3.4 million in liquidity in different DEX exchanges led by Uniswap (UNI).

Earlier, the Toncoin network was outperformed by Tron (TRX), as the TON price dropped towards $5.5 on Monday. Despite this, the Toncoin network remains a major web3 ecosystem, with over $619 million in stablecoins supply and over $388 million in total value locked.

The launch of successful meme coins – led by Notcoin (NOT) and DOGs – has significantly helped the Toncoin network remain relevant and competitive in the industry.

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