TON Sees Accumulation Trend, Positions For Price Recovery: CryptoQuant

Toncoin (TON), the native cryptocurrency of The Open Network, a decentralized layer-1 blockchain associated with the messaging platform Telegram, is seeing an accumulation trend that suggests potential price recovery in the coming weeks.

According to an analysis by the on-chain data provider CryptoQuant, TON holders appear to be increasing their bags and positioning themselves for significant price reversal over the medium term.

Investors Accumulate TON

CryptoQuant analyst ShivenMoodley explained that Toncoin’s accumulation trend is reflected in its 180-day Sharpe Ratio. The ratio’s prolonged decline suggests that speculation has dried up in The Open network. This trend is further substantiated by a shift in TON decentralized exchange activity and sustained total value locked in the blockchain’s lending services.

TON volatility has remained low despite a decline in the asset’s price. Data from CoinMarketCap shows TON was down 28% monthly, 7% weekly, and 5% daily at the time of writing, with the coin changing hands at $3.64.

ShivenMoodley said the low volatility signals potential selling exhaustion among traders. If volatility continues to decline while Toncoin’s price remains steady, the analyst said it could mean that selling pressure is exhausted and the stage is set for a potential rebound.

Price Recovery Ahead?

Meanwhile, the Normalized Risk Metric (NRM), which determines a crypto asset’s valuation and risk profile by comparing its price to key moving averages over specified periods, suggests investors are accumulating TON at a price level of $3.82.

ShivenMoodley has deemed the NRM a strong accumulation signal because record lows in the metric over the long term hint at a potential opportunity for long-term investors. Also, such low levels have preceded price recoveries historically.

“It remains to be seen whether TON’s price action can stage a full recovery. However, long-term accumulation traders are best positioned to benefit from macro policy changes that could shift sentiment in the broader crypto market. The conditions could align for a potential rebound with selling pressure fading and risk metrics signaling a low-risk environment,” the CryptoQuant analyst said.

In other news, information recently emerged about The Open Network expanding its operations to the United States amid the country’s shift to a more favorable crypto landscape. This development, if actualized, will enable the TON Foundation, a non-profit organization overseeing the network’s growth, to secure partnerships with local companies and allow American investors to interact with the TON blockchain.