On August 4, GRAM experienced massive downside volatility, crashing to a three-month low of $1.29 after reports emerged that Telegram had been temporarily removed from the Apple App Store. The app was unavailable across all 175 tested storefronts for hours due to a violation of a ban on nonconsensual media involving children. Following the restoration of the app and the removal of offending content, GRAM recovered to $1.38, though it remained down 1.09% on the daily charts. Derivatives volume surged 490% to $123.27 million as traders panicked, with sell volume on perpetuals reaching 7.57 million compared to buy volume of 6.7 million.
On August 4, 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 was temporarily removed from the Apple Store following reports that the app was unavailable across all 175 tested App Store storefronts for hours. According to Mark Gurman, the app was removed after finding content that violated a ban on nonconsensual media involving children.
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, stating, “Reports of my demise are greatly exaggerated.” After the app returned, GRAM bounced back, reclaiming $1.38 at press time, down 1.09% on the daily charts.
Holders and market players panicked and hurriedly closed their positions. Data showed 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, 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, with the overall ratio falling to 0.97.
Exacerbated by negative attention, GRAM’s downside momentum strengthened. 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. GRAM dropped below its short-term moving average 9-day MA at $1.4, indicating strong short-term pressure.
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.
