Toncoin (TON) v Cardano (ADA): On-chain Data Show Gains

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TON Price Flashes Multiple Sell Signals, Should You Sell? – Crypto News

Published

12 months ago

July 26, 2024

Dripp

Ton price experienced over 300% gains in the past three months without any significant pullbacks. Since Notcoin came to the scene in February, volume began to trickle into the chain, and price closely followed. However, Santiment data shows the TON price might be turning bearish, as it has the highest MVRV Z-Score among large-cap cryptocurrencies.

Over the past week, Ton declined by 7.9% but recovered by 2.2% in the last 24 hours, trading at $6.75. This recent increase, part of a broader market recovery, is likely due to the recent rise in Bitcoin’s price following the start 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 an on-chain metric used to assess the profitability of a crypto asset. A high MVRV value signals a high amount of unrealized profit in the market, which can result in increased selling pressure, while a low MVRV indicates just the opposite. Incorporating the Z-score allows investors to predict overvalued and undervalued markets.

Data from Santiment shows Ton is among four large-cap crypto assets with the highest MVRV Z-Score in the last three and a half months.

Large Cap Crypto Assets With MVRV Z-Score Above 0 | Source: Santiment

This suggests that investors may consider selling and taking profit as the asset could be overvalued. TON’s market cap currently sits at $16.9 billion, a surge from $5 billion in a little over 3 months. Ton MVRV Z-score sits at 5.09, followed by Bitcoin at 2.2, Ethereum at 0.95, and Dogecoin at 0.5.

Despite the sell signals on on-chain metrics, Ton developers continue to build. The most recent development is the launch of the W5 smart wallet that will allow users to make gas-free transactions on the network. It is a collaborative effort between the TON Core team and Tonkeeper.

TON Price Analysis: Indicators Point to Potential Sell Signal

TONUSDT Price Chart | Source: Tradingview — TON Price Chart | Source: Tradingview

The price of TON is trending below the 50-day but above the 20-day exponential moving average (EMA). The asset established an all-time high price of $8.28 on June 14 before it retreated.

Key support levels for TON/USD price include the immediate $6.20, $5.53 (200 EMA), and $4.78. Conversely, if the price bounces from these support levels, it may rally to test the previous ATH, encountering resistance around $7.12 (50 EMA) and $7.65.

The Relative Strength Index (RSI) is below the midpoint at 39.99 and heading downward. This indicates bearish momentum is building on the Ton and may drive the price into the oversold area. The Chaikin money flow (CMF) just dipped below the zero line, indicating capital outflow and increasing sell pressure on the asset. A zone market imbalance (Fair Value Gap) between $2.9 and $3.58 must be filled.

Despite these bearish signals and the potential for further downward movement, Ton’s fundamental strength remains intact. The project’s underlying value and potential continue to support its long-term outlook, even as short-term market dynamics pose challenges.

Frequently Asked Questions (FAQs)

The Market Value to Realized Value (MVRV) Z-Score is currently high for TON at 5.09, indicating that the asset might be overvalued and could be experiencing increased selling pressure.

TON’s MVRV Z-Score of 5.09 is the highest among large-cap cryptocurrencies, with Bitcoin at 2.2, Ethereum at 0.95, and Dogecoin at 0.5. This indicates that TON is currently experiencing a higher level of unrealized profit compared to these other assets.

There is a market imbalance or Fair Value Gap between $2.9 and $3.58 that needs to be filled, which could impact future price movements.

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