Telegram CEO Pavel Durov’s arrest in France has severely impacted Toncoin (TON), causing a 20% price drop from $7 to $5.31 on August 24. The arrest, linked to accusations of inadequate content moderation, has diminished confidence in Toncoin. Its market cap has fallen from over $17 billion to about $13.4 billion, stabilizing around $14 billion.

Analysts warn that if Toncoin falls below the $5.25 support level, it could plummet to $4.72, potentially confirming a bearish 'head and shoulders' pattern. The close ties between Toncoin and Telegram, now a liability, contribute to the uncertainty surrounding the token’s future.

Notcoin (NOT), another cryptocurrency associated with TON, has also suffered, dropping 24% from $0.012 to $0.0091. The market is closely watching to see if Toncoin can rebound above the 20-day exponential moving average at $6.34 to reverse the downward trend.