As of the latest update, Toncoin (TON) has experienced a nearly 14% decrease from its peak in late September, falling to $6.13. In addition to this decline, the market analysis indicates a bearish trend in the daily chart for the 10th-ranked cryptocurrency by market capitalization.
The correlation matrix also reveals Toncoin’s recent underperformance. Over the last month, it showed a +0.26 correlation with Bitcoin (BTC), which has seen a 10.5% increase during the same period.
To delve deeper, CryptoCrypto has examined additional indicators to evaluate the potential for Toncoin to catch up.
Signs of Accumulation in Recent Periods
Recent data on netflows from exchanges show that 5.11 million TON were withdrawn from exchanges within the last 24 hours, indicating a bullish signal associated with accumulation. Over the past 30 days, there has been a net outflow of -1.73 million TON.
It is evident that the trend of the last 24 hours differs from the monthly trend, with reports of selling pressure and token inflows earlier this week.
The Network Value to Transaction (NVT) Ratio, calculated based on daily circulation, has witnessed a steady increase since September. A high NVT suggests that the market capitalization of the asset is relatively high compared to the tokens being transacted – a potential sign of overvaluation.
Furthermore, the realized cap HODL waves (90-180 days) have shown a decline over the past three weeks, indicating movement or spending of coins held within that time frame – signaling distribution. Such actions could impact the possibility of a price rally.
Analysis of Price Movements for Traders and Investors
Both the HODL waves data and the climbing NVT present bearish assessments from on-chain sources. The daily price chart also reflects a bearish sentiment, with the recent peak at $6.13 signifying a crucial level for Toncoin to surpass in order to establish a new upward trend.
Indicators like the On-Balance Volume (OBV) and the Relative Strength Index (RSI) point towards subdued demand and neutral momentum, respectively.
Given the resistance zone at $5.4 resulting from the bearish order block, Toncoin enthusiasts must collaborate in an effort to break through, or else may risk falling behind during Bitcoin’s potential rally.