After reaching a low of $4.7 for the month, Toncoin [TON] is showing signs of bouncing back. In the last four days, there has been a consistent upward trend for Ton, reaching a peak of $5.66.
As of the latest update, Toncoin is trading at $5.64, reflecting a 3.41% increase based on daily charts.
Given the current market conditions, many analysts are optimistic about a possible price recovery. This optimism is supported by Cryptoquant’s examination of the Sharpe ratio, indicating that TON is moving towards a recovery phase.
Prospects for Toncoin’s Recovery
According to insights from Cryptoquant analyst Shiven Moodley, the Sharpe ratio of Toncoin has recently decreased from its peak this year. This decline suggests a reduction in risk-adjusted returns as the market readies itself for a potential Altseason.
The market’s stability signifies a shift from a prolonged slump towards a recovery phase. This transition encourages both long-term investors and short-term traders to take advantage of the revived market enthusiasm and positivity.
Consequently, the Sharpe ratio presents a buying opportunity for long-term stakeholders looking to leverage Ton’s resilience and growth potential.
Further affirmation of the potential market recovery can be seen through the Open interest and funding rate trends.
As these metrics rise, it indicates increased engagement within the Ton ecosystem, a critical component for a market turnaround.
The well-balanced funding rate observed in Ton reinforces our interpretation that both long and short positions are stable, suggesting market equilibrium and stability.
Interpreting Ton’s Chart Signals
Current market conditions strongly suggest that Ton is poised for a price rebound.
For instance, Toncoin’s adjusted price DAA divergence has consistently shown positive figures in the past week. This positive trend signals a healthy network utilization with a rise in on-chain activities, particularly in active addresses and transactions.
Therefore, the surge in active addresses implies increased demand, higher transaction volume, and growing interest in Ton. This alignment of market sentiments and on-chain fundamentals indicates a potential price surge.
The increase in on-chain activity is evident from the spike in large transactions, climbing from 1.01k to 1.94k in a 24-hour period, marking a significant 92.08% surge. The heightened whale activity suggests that the market is gearing up for future growth.
With the Sharpe ratio highlighting a buying opportunity and the strengthening fundamentals, Toncoin appears primed for a recovery. If the positive momentum continues, Ton could reclaim $5.8 and potentially reach $6.4 in a breakout scenario. Conversely, if the current trend falters, the altcoin might retreat to $5.2.