The post Is Toncoin (TON) a Good Buy? appeared on BitcoinEthereumNews.com.

The value of Toncoin (TON) plunged after Telegram CEO Pavel Durov was arrested on August 24. Currently trading at $5.38, TON has seen a 9% decline in price. Despite the sell-off and profit-taking, an important on-chain metric has flashed a buy signal, suggesting a possible rebound. Toncoin Presents Dip for Interested Traders Toncoin’s (TON) MVRV ratios, analyzed across different moving averages, suggest it could be a strategic time to buy the altcoin. Data from Santiment shows that the token’s 7-day and 30-day MVRV ratios currently stand at -5.71% and -9.10%, respectively. The MVRV metric compares an asset’s current market price to the average price of its circulating tokens. An MVRV ratio below zero indicates undervaluation, meaning the asset is trading below the average acquisition cost of its circulating tokens. Historically, a negative MVRV ratio signals a buying opportunity, allowing market participants to acquire assets at a lower price with the expectation of selling at a higher value later. Toncoin MVRV Ratio. Source: Santiment Additionally, TON’s derivatives market shows resilience despite the recent challenges. Rising futures open interest and a positive funding rate across exchanges reflect steady confidence among traders. Currently, TON’s futures open interest stands at $345 million, up 46% since Durov’s arrest. Futures open interest measures the total number of unsettled contracts, and an increase indicates growing participation from traders opening new positions. Read more: 6 Best Toncoin (TON) Wallets in 2024 Toncoin Futures Open Interest. Source: Coinglass Moreover, TON’s positive funding rates suggest increasing demand for long positions. Despite the recent price drop, traders continue to favor buying the asset. The latest data shows a funding rate of 0.0074%, indicating a majority of traders anticipate a price rally over a decline. TON Price Prediction: Bearish Sentiment Remains in the Spot Market TON’s spot traders have turned increasingly bearish since…

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Filed under: News - @ August 27, 2024 8:22 am