Cryptocurrencies linked to the Telegram messaging app experienced steep declines after Pavel Durov’s recent arrest. Beyond Toncoin (TON), Telegram coins, including the tap-to-earn project Notcoin (NOT) and PAAL AI (PAAL) faced a similar fate.
As of this writing, NOT’s price has decreased by 20% in the last 24 hours. PAAL’s price, on the other hand, slid by 7.99%. Will these tokens recover?
Notcoin Price at Risk of Further Losses
On August 22, Notcoin’s price was $0.010 and showed signs of reclaiming $0.012. However, Durov’s unfortunate arrest appears to have invalidated that prediction.
At press time, NOT trades at $0.0095 and has nosedived below the descending trendline. According to the daily chart, the drawdown could be linked to the wider market sell-offs, which happened as an aftereffect of the incident in France.
As seen in the chart below, Bull Bear Power (BBP) has dropped to the negative region. The BBP, also known as the Elder Force Index (EFI), gauges if buyers or sellers are stronger in the market.
Read more: 5 Top Notcoin Wallets in 2024
When the indicator crosses above the zero line, bulls are stronger. However, since it is below it, it means bears are dominating, and the selling pressure, if intensified, could drag NOT’s price further down.
Furthermore, an assessment of the liquidation heatmap shows that NOT, one of the top Telegram coins, might continue to decrease. The heatmap shows price levels where large-scale liquidations might occur.
On the same indicator, the higher the liquidity concentration at a point, the higher the chances of a price moving toward that area. As of this writing, Notcoin has a high concentration of liquidity at $0.0090.
Therefore, if the decline continues, the price of the Telegram coin might drop to this region mentioned above.
Durov’s Detention Halts PAAL AI Rally
PAAL AI, one of the top Telegram coins, could see its price trend in a similar direction to that of Notcoin. On the daily chart, PAAL had attempted to reach $0.23 before Durov was detained. However, the incident forced a rejection and was instrumental in sending the token down to its current value.
The Relative Strength Index (RSI) also proved the thesis. According to the chart below, the RSI, a technical oscillator that measures momentum, was on the cusp of crossing the 50.00 neutral line.
As a result, PAAL’s price attempted to hit $0.23. But the bullish momentum fizzled after the French authorities arrested the Telegram CEO. From the chart below, Durov’s continued detention could drive PAAL’s price down to $0.15.
Read more: What Are Telegram Bot Coins?
Meanwhile, crypto traders on X believe that Durov, who is believed to be worth $15 billion, might be released soon. One of those with such a perception is Daan Crypto Trades.
“Seeing the grounds on which they detained Durov (“Failure to control the content on Telegram”), I personally think he’ll be set free pretty quickly,” the trader revealed his thoughts on the matter.
Should this happen, Telegram coins, including PAAL AI and Notcoin, might experience a major rebound. NOT’s price could hit $0.012, while PAAL could attempt to reach $0.30 if Durov gets his freedom.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Victor Olanrewaju
https://beincrypto.com/telegram-coins-uncertain-future/
2024-08-25 23:00:00
