TON Price Flashes Multiple Sell Signals, Should You Sell?

by

As a seasoned researcher with extensive experience in the crypto market, I have closely followed Ton’s price action and on-chain metrics over the past few months. I have witnessed its impressive gains of over 300% since February, driven by increasing volume and hype around the project.

The price of Toncoin (TON) surged by over 300% in the past three months with minimal setbacks, a trend that started following its introduction in February. A gradual increase in trading volume paved the way for this significant price growth. However, according to data from Santiment, the bearish sentiment surrounding TON is on the rise. It currently boasts the highest MVRV Z-Score among major cryptocurrencies, suggesting potential for a price downturn.

Over the past week, I’ve observed a significant decrease of 7.9% in Ton’s value. However, in the last 24 hours, there has been a notable recovery of 2.2%, with the stock currently priced at $6.75. This recent uptick is most likely connected to the broader market recovery, which can be attributed to the recent surge in Bitcoin‘s price following the commencement of the Bitcoin conference in 2024.

MVRV Z-Score Predicts Correction for BTC, DOGE, ETH, and TON Price

The Market Value to Realized Value (MVRV) ratio is a metric used in crypto markets to evaluate the profitability of an asset. A high MVRV signifies substantial unrealized gains, potentially leading to heightened selling activity. Conversely, a low MVRV suggests minimal unrealized profits and possibly increased buying interest. Introducing the Z-score enhances this analysis by helping investors identify potentially overvalued or undervalued markets.

According to Santiment’s data, Ton is one of the large-cap cryptocurrencies exhibiting the most favorable Market Value to Realized Value (MVRV) Z-Scores over the past three and a half months.

TON Price Flashes Multiple Sell Signals, Should You Sell?

As a researcher studying the cryptocurrency market, I’ve come across some intriguing data that could potentially signal a need for caution among investors. The total market capitalization of TON has experienced a significant increase, jumping from $5 billion to $16.9 billion in just over three months. While impressive, this rapid growth raises questions about the asset’s current valuation.

In contrast to the bearish indicators indicated by on-chain metrics, Ton developers persist in their building efforts. The latest achievement is the introduction of the W5 smart wallet, which enables users to carry out transaction fees-free on the network. This initiative represents a joint endeavor between the TON Core team and Tonkeeper.

TON Price Analysis: Indicators Point to Potential Sell Signal

TON Price Flashes Multiple Sell Signals, Should You Sell?

The current cost of TON is currently dipping below its 50-day moving average, yet still hovering above the 20-day exponential moving average. This digital asset peaked at a record high of $8.28 on June 14th before experiencing a decline.

Supportive prices for TON/USD are significant at the current $6.20 level, as well as $5.53, which is equivalent to the 200 Exponential Moving Average (EMA), and $4.78. On the other hand, if the price rebounds from these support levels, it could potentially surge towards retesting its all-time high (ATH), facing resistance around $7.12 (represented by the 50 EMA) and $7.65.

With a Relative Strength Index (RSI) of 39.99, which is below the midpoint, and trending downward, the Ton’s bearish momentum is intensifying. This could lead to further price declines as the asset approaches the oversold region. A significant shift in capital flow has been observed with the Chaikin Money Flow (CMF) falling beneath the zero line. This signifies that money is leaving the market, adding to the sell pressure on the asset. Additionally, a market imbalance, represented by a Fair Value Gap, exists between $2.9 and $3.58, which must be addressed before a stable market condition can be achieved.

In spite of the pessimistic indicators suggesting a possible decline and the potential for further price drops, Ton’s solid fundamentals persist. The value and prospective growth of the project serve as a foundation for its optimistic future perspective, despite the hurdles presented by short-term market fluctuations.

Read More

2024-07-26 12:30