Toncoin (TON) is showing important buying opportunities for investors. Although this token is still 35% lower than its All-Time-High, some key indicators suggest that the price of TON may be entering a favorable accumulation zone.
Since July, TON has struggled to retest the $8 level, despite having signs of potential breakouts at various points. However, according to this on-chain analysis, there is a high likelihood that this Altcoin could reach that level before the end of 2024.
Sharpe Ratio and User Growth of Toncoin
The price of Toncoin is currently $5.29 and has been oscillating around this area since October 11th. However, the Sharpe Ratio, which measures risk-adjusted returns, suggests that this cryptocurrency has reached a low-risk area.
Using data from CryptoQuant, when the Sharpe Ratio turns red, it is in a high-risk area, often signaling an impending price correction. But at the time of writing, Toncoin is in the green zone, indicating that this Altcoin has provided an attractive option for those wondering if the current price level can deliver favorable returns.
Toncoin's Sharpe Ratio. Source: CryptoQuantAccording to crypto analyst Maartunn, TON is showing signs of recovery. However, in his post on CryptoQuant, he advises investors to be cautious and wait before committing significant capital to this Altcoin.
"While I don't recommend buying directly at this time, it may be useful to add it to your watchlist or wait for an extremely low-risk signal before taking action. With the Sharpe Ratio cooling off and unique user count rising above 100 million, this coin is starting to look healthy again,"
Maartunn wrote.
Toncoin's Price DAA Divergence index supports this view. Typically, a decline in DAA Divergence indicates a decrease in user engagement and is often a sell signal. However, at the time of writing, this index has increased, suggesting that the increased activity on the Toncoin network may support its price potential.
Toncoin's Price DAA Divergence. Source: SantimentTON Price Prediction: Potential to Surpass $7
Looking at the chart, the price of Toncoin is approaching the 61.8% Fibonacci retracement level. Currently at $5.52, this ratio, also known as the golden ratio, is considered a strong support area. Therefore, if TON can reclaim this level, it may provide the necessary strength to drive a price increase. Looking at the outlook, reaching $5.52 could propel the Altcoin to $6.19 — the 38.2% Fib level, which is also a significant area.
Daily price analysis of Toncoin. Source: TradingViewIf this occurs, Toncoin could rise to $7.27. The last time this cryptocurrency reached that level was after Binance listed the native token of Telegram. However, if TON faces rejection at the $6.19 level, the forecast may not materialize. Instead, it could drop to $4.44.
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