Toncoin Faces Major Price Drop, Offers Buying Opportunity
Toncoin has seen its value plummet by 28% over the last month, currently trading at $3.89. This significant dip has brought TON to its lowest point in history, potentially setting the stage for strategic investment by long-term holders.
In a recent analysis by CryptoQuant's Joao Wedson, it was revealed that TON has hit all-time lows on the Normalized Risk Metric (NRM) indicator. This positions the cryptocurrency as a prime purchase opportunity for investors looking to capitalize on its long-term prospects.
The NRM indicator measures a coin's value by comparing its current price to crucial moving averages. When the NRM indicates a historically undervalued price, like in TON's case, it signals a promising entry point for investors who believe in the token's future potential.
Wedson emphasized that TON's NRM is currently at its lowest levels for both the medium and long term, indicating a low-risk accumulation zone. This suggests that TON's current price presents an undervalued opportunity compared to its historical trends, making it an appealing investment prospect for discerning investors.
Furthermore, BeInCrypto's assessment of TON's market value to realized value (MVRV) ratio supports the notion of undervaluation. With the MVRV ratio standing at -12.95%, according to Santiment, TON is considered undervalued compared to its initial market price.
Historically, negative MVRV ratios like this one have signaled an opportune moment to buy low and potentially sell high, making TON an enticing proposition for savvy investors seeking value in the market.
Will Toncoin's Price Surge to $4.96?
Despite recent market turbulence, TON has shown resilience, registering a 1% price increase in the past 24 hours amidst broader market positivity. Should investors continue to accumulate the token, TON could sustain its upward trajectory in the short term.
In a bullish scenario, TON's price might breach the crucial resistance level at $4 and soar to $4.17. Further support at this level could propel TON's value even higher, potentially reaching $4.96.
Conversely, if accumulation slows down, TON risks retracing its recent gains and dropping to $2.91. Investors are urged to monitor market trends closely to capitalize on potential buying opportunities presented by TON's current valuation.