Toncoin (TON) has experienced an 11% drop in the last month, now trading at $4.85. The decline offers a potential buying opportunity, as on-chain data indicates the cryptocurrency might be undervalued. The Market Value to Realized Value (MVRV) ratio suggests underpricing, as its 30-day and 90-day ratios stand at -6.49% and -12.63%, respectively.
A negative MVRV ratio usually implies that an asset is being sold at a price lower than the acquisition cost for most holders, highlighting potential losses if sold at current market prices. Historically, this has often signaled a buying opportunity for those looking to capitalize on low buying prices.
Despite these indications, Toncoin faces bearish market momentum, as demonstrated by its -0.019% funding rate. This suggests more traders are shorting the cryptocurrency, betting on lower prices. The 20-day exponential moving average (EMA) has been broken, indicating waning bullish momentum and a possible continuation of the downtrend.
Currently, Toncoin’s price of $4.85 sits just below a resistance mark of $5.19, with significant support at $4.47. If selling pressure persists, the price could fall to $3.44. However, should market sentiment shift positively, breaking the $5.19 resistance could lead to a strong rally toward $6.80, representing a potential 39% increase.
