Toncoin’s its value has been falling since Telegram CEO Pavel Durov was arrested on August 24. Currently trading at $5.38, TON has seen a 9% drop in price. Despite selling and profit-taking, a key onchain data has given a buy signal hinting at a possible recovery. Toncoin’s (TON) MVRV ratios analyzed on different moving averages suggest that this could be a strategic time to buy the altcoin.
What’s Happening on the Toncoin Front?
From Santiment The data shows that the token’s 7-day and 30-day MVRV rates are currently -5.71% and -9.10% respectively. MVRV data compares the current market price of an asset to the average price of its tokens in circulation. An MVRV rate below zero indicates undervaluation, meaning that the asset is trading below the average acquisition cost of its tokens in circulation. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
Historically, a negative MVRV ratio signals a buying opportunity, allowing market participants to buy assets at a lower price with the expectation of selling them at a higher value later. TON’UN The futures market has been showing resilience despite recent challenges.
Rising futures open interest and positive funding rates on exchanges reflect stable confidence among investors. Currently, TON’s futures open interest has increased by 46% since Durov’s arrest, reaching $345 million. Futures open interest measures the number of contracts outstanding, and the increase reflects the increased participation of investors opening new positions.
TON Graphic Analysis
TON’UN Spot traders have been increasingly bearish since Durov’s arrest. The token’s technical indicators are overshadowing buying activity, highlighting an increase in selling pressure. For example, TON’s Directional Movement Index (DMI) is showing a positive directional indicator (+DI) below a negative directional indicator (-DI), indicating a strong downtrend and intensifying selling pressure.
Additionally, the token’s Relative Strength Index (RSI) is highlighting bearish momentum. Since the halt, TON’s RSI has dropped from a neutral 50 to 36.98, approaching oversold territory, indicating increased selling activity. If selling pressure continues, TON’s value could drop to $4.73. Conversely, an uptrend could push the price to $5.47.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
