Notcoin price fell 10% on Monday after news broke that 12 serious criminal charges had been filed against Telegram founder and CEO Pavel Durov. This news accelerated selling pressure on Telegram-related cryptocurrencies Toncoin (TON) and Notcoin (NOT), suggesting an ongoing correction.
Notcoin price crashes as Pavel Durov faces 12 criminal charges
According to the official press release from the French judicial authorities on August 27, 2024, Telegram founder Pavel Durov is now facing 12 serious criminal charges. Durov’s arrest last Saturday evening at Le Bourget airport outside Paris sent shockwaves through the tech and crypto community.
The twelve charges include complicity in operating an online platform for illegal transactions, refusal to cooperate with the authorities, possession and distribution of child pornography, drug trafficking and possession, aiding and abetting unauthorized access to data systems, organized fraud and criminal association to commit serious crimes.
In addition, he is accused of money laundering with links to organized crime, providing unauthorized cryptology services and tools, and importing cryptology tools without proper declaration.
Following this report, Notcoin price plummeted to $0.0086, a loss of 25% in 72 hours, while the market cap dropped to $887.2 billion.
NOT price just before big breakout
Over the past three months, Notcoin price has been experiencing a steady corrective trend under the influence of a falling wedge pattern. This chart formation is characterized by two converging trend lines that serve as dynamic resistance and support levels.
If the Pavel Durov legal saga continues, the NOT price could drop another 5% and breach the lower trend line. A bearish breakout from the wedge pattern will increase the selling pressure and trigger a 42% decline to reach the $0.046 support.
The altcoin is currently challenging the lower boundary of the Bollinger Band indicator, which highlights that sellers dominate the price movement.
On the contrary, the falling wedge is typically a pattern that signals a trend reversal and provides a new breakout opportunity. If the support trend line holds, the Notcoin price could rebound and possibly break the upper trend line. The rally after the breakout could renew the bullish momentum and set a target of $0.018.
Frequently Asked Questions (FAQs)
Following the criminal arrest of Telegram founder Pavel Durov, the price of Notcoin fell by 25% in three days.
The NOT price is currently 5% away from a major breakdown of the 50-day support
Yes, a bullish breakout from the falling wedge pattern could signal the end of the corrective trend.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Equipped with a strong understanding of technical analysis, he keeps an eye on the daily price movements of major assets and indices. Attracted by his fascination with financial instruments, Sahil has enthusiastically turned to the emerging space of cryptocurrencies, where he continues to explore opportunities fueled by his passion for trading.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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