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Toncoin: Key metrics hit yearly low – Mapping TON’s next move
The cryptocurrency market has been experiencing a tumultuous ride in recent times, with many assets plummeting in value. One such asset that has taken a hit is Toncoin [TON], whose revenue and market capitalization have fallen to yearly lows. As a result, it appears the coin is on the verge of further losses.
Firstly, it’s important to note that Toncoin’s revenue has dropped to a yearly low of $9.1k, indicating a significant decline in economic activity. This is evident from the stark reduction in transactions, DeFi activity, and trading volume, which collectively signify a sharp drop in demand. The simultaneous dip in market capitalization has further exacerbated the situation.
Notably, this downward trend in revenue and market cap is accompanied by a decrease in on-chain activity. As a result, it’s now possible to identify higher inflation due to reduced deflationary pressure. Historically, higher inflation precedes lower prices. This development raises concerns about the potential for further price drops.
Furthermore, we’ve observed a shift in the network engagement metric, with the Adjusted Price DAA Divergence turning negative. The divergent result points to low network engagement and implies that TON’s price could potentially decline even further to meet actual network demand.
It is apparent that the demand and network usage have been significantly impacted by bearish sentiments, with investors increasingly selling their assets as prices drop. This trend has led to a stark rise in seller pressure, resulting in oversold territory for RSI. Furthermore, CMF has also decreased, reaching a negative value. The combined effect of these metrics underscores the dominance of sellers in the market.
Notably, this sentiment is further exacerbated by activity from large holders, as their Netflow Ratio has surged to an unprecedented 1016%. This indicates that many significant investors are offloading their TON assets onto exchanges for selling purposes. Such an aggressive sell-off from whales reflects a deep-seated lack of confidence in the market and reinforces bearish sentiment.
In conclusion, Toncoin’s future trajectory seems uncertain at best. As long as bearish sentiments persist, it is likely that further losses will be incurred by investors. However, with RSI now in oversold territory, a buying opportunity may have emerged for those willing to take the plunge.
Source: https://ambcrypto.com/toncoin-key-metrics-hit-yearly-low-mapping-tons-next-move
