TON Price Stalling? Analyst Flags Key Resistance As Durov Uncertainty Lingers

• Renowned crypto analyst spots a “sense of denial” among TON holders.
• Telegram founder is set to return to Dubai after many months in France under arrest.
• TON is at a crucial level ahead of a potentially significant move.

Cryptocurrency analyst Ali Martinez has observed a potential “sense of denial” among holders of TON, the native cryptocurrency of the TON blockchain, following recent news surrounding Telegram’s founder, Pavel Durov.

In his latest analysis, Martinez highlighted the cryptocurrency’s price action, noting its struggle around a historically significant level.

Using the TON/USD daily chart, the analyst pointed out that TON’s price has shown some hesitation while attempting to break through resistance around the $3.5 mark. 

The cryptocurrency had previously experienced a notable surge from a local low of $2.35 after a significant decline, rallying with considerable momentum before encountering resistance at its current price point.

Why Is the $3.5 Level Important?

In the meantime, Martinez reviewed TON’s price for the past year and highlighted the $3.5 region as an optimistic level during last year’s bull run. The price served as a momentum boost for TON holders in the bullish market and triggered a substantial rally that pushed the cryptocurrency’s price to higher levels.

Although most technical analysts could consider historical behavior and expect a repeat of last year’s price surge, Martinez thinks Durov’s ongoing legal issue with the French government might be negatively impacting TON’s prospects. The legal situation appears to have caused an abrupt halt to the recent rally that followed the cryptocurrency’s attempted recovery.

Related: Crypto Market Jitters as Pavel Durov’s Release Odds Dwindle

In the meantime, the French government recently allowed Durov to return to his home in Dubai after holding him in custody for several months. French authorities had arrested the Telegram founder last August, accusing him of failing to adequately moderate his platform and curb criminal activity. However, Durov denied the allegations, noting that he has cooperated with law enforcement over drug trafficking, child sexual abuse content, and fraud.

Typically, crypto community members would expect Durov’s return to his home in Dubai to trigger positive sentiments for TON. That could still happen, depending on the altcoin’s next move from the current level.

Related: Toncoin Market Performance Slips with Open Interest Falling to $141M

Nevertheless, Martinez characterized the current situation as a “sense of denial,” as previously mentioned, suggesting that TON holders might be overlooking the potential impact of Durov’s legal challenges.