In the past week, the cryptocurrency market has experienced a degree of volatility following the swearing-in of Donald Trump as President of the United States. This period of uncertainty is evident in the varied performance of different cryptocurrencies.
Take Toncoin, for example; its price has dropped nearly 9% over the last week, highlighting the bearish sentiment in the market. However, recent on-chain analytics suggest that this cryptocurrency might be on the verge of a price recovery after facing recent challenges.
Should You Consider Buying Toncoin?
An analyst known by the pseudonym Maartunn recently posted insights on the CryptoQuant platform, providing information on how the current market conditions could influence Toncoin’s price movement. The key metric to note here is the Normalized Risk metric (NRM), which assesses the price risk of an asset against its historical data.
This on-chain metric helps determine the risk level of a cryptocurrency, such as Toncoin. Generally, the Normalized Risk metric ranges from 0 to 1, with values closer to 0 indicating lower risk and those near 1 suggesting higher risk.
The chart highlights that the current Normalized Risk value is leaning closer to zero, suggesting that Toncoin is nearing a low-risk zone. Historically, low readings in this metric have been linked to local price bottoms for Toncoin.
For instance, TON’s price dropped to approximately $5.3 before rebounding to $6.8 in August 2024, during which the Normalized Risk was notably below 0.1. Likewise, about a month later, the altcoin’s value jumped to $5.9 after a dip to $4.6, with the Normalized Risk indicator hovering around 0.1.
However, Maartunn cautioned that it might take a while for this metric to “fully bottom out and reach its lowest risk level.” Nevertheless, the latest on-chain insights imply that the Normalized Risk metric is close to a significant inflection point, suggesting a potentially promising rebound for Toncoin’s price.
Current Price Analysis of TON
At this moment, Toncoin’s price sits around $5.08, reflecting a slight 0.7% uptick in the last 24 hours. This minimal daily activity highlights the prevailing uncertainties in the market, as well as Toncoin’s recent struggles.
On larger time scales, TON’s performance has been lackluster, having failed to break past the $6 barrier in the last month. Data from CoinGecko indicates that the altcoin has seen a decline of nearly 15% over the past month.
