On the 4th of August, GRAM recorded massive downside volatility and crashed to a three-month low. The altcoin dropped to $1.29, the lowest level recorded since late April.
Telegram has been temporarily removed from the App Store
GRAM plunged on price charts following August 4 reports that Telegram was removed from the Apple Store. In fact, independent monitoring data indicated the app was unavailable across all 175 tested App Store storefronts for hours.
However, existing installations continued to function. Mark Gurman reported that the app was removed from Apple’s App Store after finding content that violated a ban on nonconsensual media involving children.
However, after disappearing for four hours, the app was restored. The restoration came after the developer removed the content and banned users associated with it.
Telegram sarcastically responded to the news, adding that,
‘Reports of my demise are greatly exaggerated”.
After the app returned, the fear eased, and GRAM bounced back, reclaiming $1.38 at press time, down 1.09% on the daily charts.
Why did GRAM record such a considerable crash?
Following the reports, holders and market players panicked and hurriedly closed their positions.
Activities in the derivatives market confirmed this fear. According to CoinGlass data, GRAM’s derivatives volume surged 490% to $123.27 million, while Open Interest rose 1.2% to $93.28 million.
The rising volume reflected increased market participation, but most of it was driven by sellers. On the perpetuals side, for example, sell volume rose to 7.57 million, while buy volume dropped to 6.7 million.
This suggested that more sell-side traders were executed. Meanwhile, the Long/Short Ratio dropped below 1 on OKX and Binance.
The overall ratio dropped to 0.97, suggesting traders turned bearish and opened short positions, anticipating further declines.
What’s next for the altcoin?
Exacerbated by negative attention, GRAM’s downside momentum strengthened. In fact, the altcoin’s Relative Strength Index (RSI) formed a bearish crossover and fell to 38.
At 38, this indicator showed sellers had taken significant control of the market. The MA Coss further validated this shift in trend.
GRAM dropped below its short-term moving average 9-day MQ at $1.4, indicating strong short-term pressure.
For now, these two indicators suggest that downside momentum is strong and likely to continue. If the pressure holds, GRAM will fail to hold the $1.30 level.
However, since the concerns that triggered the price drop have been addressed, the trend reversal is likely, and the downside will be short-lived. If that happens, the altcoin will reclaim $1.42 and eye $1.46.
Final Summary
- Telegram was temporarily removed from the Apple Store after violating content guidelines.
- GRAM crashed heavily, dropping to a low of $1.29 as traders panicked and exited their positions.
