The post Why Toncoin Price Drop Could Mean It’s Time to Buy appeared on BitcoinEthereumNews.com.

Toncoin (TON), the Telegram-linked cryptocurrency, has seen a double-digit decline over the past month, now trading at $4.85 — an 11% drop in 30 days. On-chain data suggests that Toncoin’s recent price drop may have left it undervalued, hinting at a potential buying opportunity for dip-seeking investors. But the question remains: is now the right time to buy Toncoin? Toncoin Flashes Buy Signal, But It Comes With Risks Toncoin’s Market Value to Realized Value (MVRV) ratio, an indicator that measures the overall profitability of its holders, suggests that the altcoin has been undervalued in recent weeks. Currently, its 30-day and 90-day MVRV ratios stand at -6.49% and -12.63%, respectively. A negative MVRV ratio indicates that an asset is trading below the average acquisition price for most investors. This means that if all holders sold at the current market price, they would incur losses. Nonetheless, historically, a negative MVRV is a buy signal. It suggests the asset is undervalued, offering a potential buying opportunity for traders aiming to buy low and sell high.  Read more: What Are Telegram Bot Coins? Toncoin MVRV Ratio. Source: Santiment While on-chain metrics suggest a potential buying opportunity for Toncoin, the token remains vulnerable to further declines due to a prevailing bearish bias. This sentiment is reflected by Toncoin’s current funding rate of -0.019%, indicating market sentiment is tilted toward short positions. The funding rate, a periodic fee between long and short positions in perpetual futures contracts, helps maintain alignment with the underlying asset’s spot price. A negative rate implies that more traders are betting on price drops, signaling bearish momentum in the market. Toncoin Funding Rate. Source: Santiment TON Price Prediction: Token Needs Bullish Support Toncoin’s sustained decline has pushed its price below its 20-day exponential moving average (EMA), which measures its average price over the…

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Filed under: News - @ November 1, 2024 12:24 pm