Notcoin (NOT), the native token of the Telegram Open Network (TON), has experienced a sharp decline following the arrest of Telegram’s CEO, Pavel Durov. The cryptocurrency’s value has plummeted by 20% since the news broke, raising concerns about its future prospects.
Durov’s Arrest and Its Impact
Durov’s arrest on August 24 sent shockwaves through the cryptocurrency community, particularly those invested in TON and its associated tokens. As the mastermind behind Telegram and a prominent figure in the tech industry, Durov’s legal troubles have cast a shadow over the future of TON. Investors, fearful of potential regulatory hurdles and legal challenges, have rushed to sell their NOT holdings, driving the price down.
Declining Activity and Sentiment
The decline in Notcoin’s price has been accompanied by a significant decrease in trading activity. The number of active addresses trading NOT has dropped by over 75% in recent weeks, indicating a loss of interest and confidence in the cryptocurrency. Additionally, the number of new addresses being created to trade NOT has also plummeted, further underscoring the weakening sentiment surrounding the token.
Whales Accumulating Amidst the Downturn
Despite the overall bearish trend, there are signs that some investors are taking advantage of the low prices. Large holders, or whales, have been accumulating NOT, with their netflow surging by 312% in the past seven days. This suggests that some investors believe that the current market conditions present a buying opportunity.
Technical Indicators Point to Further Declines
However, technical analysis suggests that the short-term outlook for Notcoin remains negative. The Chaikin Money Flow (CMF) is in a downtrend, indicating that more money is flowing out of the market than into it. Additionally, the Relative Strength Index (RSI) is below its neutral level of 50, suggesting that selling pressure is stronger than buying activity.
Conclusion
Notcoin’s future is uncertain following the arrest of Pavel Durov and the subsequent decline in price and trading activity. While some investors are taking advantage of the low prices, the overall outlook for the cryptocurrency remains bearish. As the legal situation surrounding Durov unfolds, investors will be closely monitoring the developments to gauge the potential impact on TON and its native token.