Notcoin price plunged 10% on Monday following the report that Telegram founder and CEO Pavel Durov is facing 12 serious criminal charges. This news accelerated the selling pressure on Telegram-related cryptocurrencies Toncoin (TON) and Notcoin (NOT), projecting the risk of a prolonged correction.
Notcoin Price Tumbled as Pavel Durov Faces 12 Criminal Charges
According to the official press release by the French judicial authorities on August 27, 2024, Telegram founder Pavel Durov is now facing 12 serious criminal charges. Durov was arrested last Saturday evening at Le Bourget airport outside Paris, which sent shockwaves through the tech and crypto communities.
The 12 criminal charges include complicity in managing an online platform for illegal transactions, refusal to cooperate with authorities, possession and distribution of child pornography, drug trafficking and possession, facilitating unauthorized access to data systems, organized fraud, and criminal association for serious crimes.
Additionally, he is charged with money laundering linked to organized crime, providing unauthorized cryptology services and tools, and importing cryptology tools without proper declarations.
Amid this report, the Notcoin price plunged to $0.0086, registering a 25% loss within 72 hours, while the market cap plunged to $887.2 Billion.
NOT Price Nearing Major Breakout
For the past three months, the Notcoin price has witnessed a steady correction trend under the influence of a falling wedge pattern. This chart formation is characterized by two converging trendlines that serve as dynamic levels of resistance and support.
If the legal saga surrounding Pavel Durov continues, the NOT price could plunge another 5% to breach the lower trendline. A bearish breakdown from the wedge pattern will intensify the selling pressure and drive a 42% fall to hit $0.046 support.
The altcoin is currently challenging the lower boundary of the Bollinger band indicator, which accentuates that sellers dominate the price movement.
On the contrary, the falling wedge is typically a pattern signaling a trend reversal, presenting a new breakout opportunity. If the support trendline holds, the Notcoin price could rebound and potentially breach the overhead trendline. The post-breakout rally could renew bullish momentum and set a target of $0.018.
Frequently Asked Questions (FAQs)
Notcoin price dropped 25% in three days following the arrest of Telegram founder Pavel Durov on criminal charges.
NOT price is currently 5% away from a major breakdown in 50-day support
Yes, a bullish breakout from the falling wedge pattern could signal the end of the correction trend.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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