Toncoin (TON) is providing investors with an important buying opportunity. This token is 35% lower than its all-time high, but several key indicators suggest that TON's price can enter a favorable accumulation zone.
TON has tried to break above the $8 level several times since July, but has failed each time. However, this on-chain analysis suggests that this altcoin has a high probability of reaching that level by the end of 2024.
Toncoin, Sharp Ratio and On-Chain Users Increasing
The current price of Toncoin is $5.29 and has been trading in a similar range since October 11th. However, the Sharp Ratio, which measures risk-adjusted returns, indicates that the cryptocurrency has entered a low-risk zone.
When using CryptoQuant data, a red Sharp Ratio usually signals a high-risk zone that often precedes a price correction. However, Toncoin is currently in the green zone, making it an attractive option for those wondering if the current price level can generate favorable returns.
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Crypto analyst Maroon suggests that TON is showing signs of recovery when considering this sentiment. However, he recommended that investors on CryptoQuant be cautious and wait before investing significant capital in the altcoin.
"At this point, I wouldn't recommend direct purchases, but it could be beneficial to add it to your watchlist or wait until very low-risk signals appear. This coin has started to regain its health as the Sharp Ratio has decreased and the unique user count has surpassed 100 million," Maroon wrote.
The divergence of Toncoin's Daily Active Addresses (DAA) supports this outlook. Generally, a decrease in DAA divergence indicates a decrease in user engagement and often acts as a sell signal. However, this indicator is currently rising, suggesting that increased activity on the Toncoin network could support potential price appreciation.
Toncoin Price Prediction: Rally Above $7 Possible
Looking at the chart, Toncoin's price is approaching the 61.8% Fibonacci retracement level. This ratio, currently at $5.52, is considered a strong support area.
Therefore, if TON can reclaim that level, it could provide the necessary momentum to drive a price increase. Based on the current situation, if it reaches $5.52, the altcoin could rise to $6.19 - the 38.2% Fibonacci level. This is also a crucial zone.
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If this scenario plays out, Toncoin could rise to $7.27. The last time the cryptocurrency reached that level was after Binance listed the Telegram-based token. However, if TON is rejected at $6.19, the prediction may not materialize. Instead, it could drop to $4.44.
