"TON's Toncoin Plunges 57% After Durov's Arrest, Bear Market Looms"

Toncoin, the native cryptocurrency of the TON Blockchain, has experienced a significant price decline, entering a bear market after reaching an all-time high of $8.27 in June 2024. The token has since dropped by 57% to $3.53, resulting in a $9 billion wipeout in market capitalization, which fell from $18 billion to $8.8 billion.

The price crash was triggered by the arrest and charging of Pavel Durov, the founder of TON, with 12 crimes in France. These charges include drug trafficking, sharing of images of child sex abuse, and allowing illicit transactions. The decline accelerated as most tokens in the TON ecosystem failed to meet expectations, with Hamster Kombat (HMSTR) crashing by over 80% from its all-time high, giving it a valuation of just $103 million.

Other tokens in the TON Blockchain ecosystem, such as Tapswap, Notcoin, Catizen, and DOGS, have also plummeted by double digits. The number of active wallets on the TON Blockchain has significantly declined, with TonStat data indicating that active monthly wallets have fallen to four million, the lowest level since July last year. The network had over 12 million monthly wallets in August.

The number of on-chain wallet activations has dropped to 30,778, down from 655,000 in August. Other on-chain metrics, including daily transactions and annual inflation rates, have also been bearish for the coin. The TON Blockchain has continued to lose market share in other areas, with the total value locked in its decentralized finance ecosystem dropping to $172 million, ranking it as the 37th-largest blockchain.

The daily chart shows that TON peaked at $8.2790 in June 2024. It recently formed a death cross pattern as the 50-day and 200-day exponential moving averages crossed each other. Toncoin has dropped below the key support level of $4.45, which was its lowest point on September 5. It has also moved below the 61.8% Fibonacci retracement level. The Relative Strength Index and the MACD indicators are both pointing downward.

Analysts suggest that Ton