Trading activity in the cryptocurrency market decreased last month. As a result, the global cryptocurrency market’s total value dropped by 4% over the past 30 days. While some crypto assets experienced double-digit declines, Toncoin’s (TON) price managed to rise. As of the time of writing, the altcoin is trading at $7.93, with its value increasing by 24% over the past month.
What’s Happening with TON?
An on-chain assessment of TON’s price movements indicates that buyers might be exhausted. This is based on data derived from the token’s Daily Active Addresses (DAA) Divergence. This data compares an asset’s price movements with changes in the number of daily active addresses. It monitors whether an asset’s price movement is supported by corresponding activity on its network.
As of the time of writing, TON’s Price-DAA Divergence is recorded at 281.15%. This indicates that its price has increased significantly compared to its daily active addresses. There is a 281.15% divergence between the altcoin’s price and the changes in daily active addresses.
When data rises this way, it suggests that the price increase occurred without a corresponding rise in network activity. This could mean that TON’s price increase is due to speculative buying or potential overvaluation. Confirming TON’s overvaluation, the Market Value to Realized Value (MVRV) ratio is 59.18%, which measures the ratio between an asset’s current price and the average price at which the entire token supply was acquired.
When the value is above one, the asset’s current market value is significantly higher than the price at which most investors acquired their assets. It is considered overvalued, and most investors sell at this level for profit.
TON Chart Analysis
Despite TON’s price increase over the past month, the Chaikin Money Flow (CMF) has been on a downward trend since June 15. This indicator measures the flow of money in and out of the market. When an asset’s price rises while CMF data falls, a bearish trend forms.
This indicates that the upward price trend is losing momentum and may be unsustainable. Investors interpret this as a warning signal for a potential price reversal. If TON’s price corrects, it may fall to $7.70. However, if demand increases and the token continues its upward trend, TON’s value could rise to $8.28.
