What does the recent Tonkcoin price movement mean for the future?

Toncoin (TON) is finally looking like a significant buying opportunity for investors. While the token is 35% below its all-time high, a number of key indicators suggest that the ton price may be entering a comfortable accumulation zone.

Since July, the ton has struggled to retest the $8 mark despite showing signs of a potential breakout at various points. However, based on this chain analysis, there is a high chance that the altcoin will reach that level before the end of 2024.

Toncoin's sharp ratio and user growth indicate a healthy market

Toncoin's price is currently at $5.29 and has been hovering around the same area since October 11. However, the Sharpe ratio, which measures risk-adjusted returns, indicates that the cryptocurrency has reached a low-risk area.

Using CryptoQuant data, when the Sharpe ratio turns red, it is usually at a high-risk area, indicating a price correction. But as of this writing, Toncoin remains in the green zone, indicating that the altcoin's current price levels provide an attractive option for those who think it can generate good returns.

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Given this development, crypto analyst Martin Ton suggests that it is showing signs of recovery. However, in his post on CryptoQuant, he encouraged investors to be cautious and wait before committing large capital to an altcoin.

Although I don't recommend buying outright now, it may be worth adding to a watchlist or waiting for a very low-risk signal before taking action. “This coin is starting to look healthy again as the Sharpe ratio continues to cool down and the number of unique users increases to over 100 million,” Martin wrote.

Daily Active Addresses (DAA) divergence of Toncoin price supports this view. Typically, a drop in DAA variance indicates a decline in user engagement and is often used as a sell signal. However, as of this writing, the benchmark has risen, suggesting that increased activity on the Toncoin network could support its potential price growth.

Price Forecast ton: A rally above $7 is possible.

A look at the chart shows that Toncoin price is approaching the 61.8% Fibonacci retracement area. Currently sitting at $5.52, this ratio, also known as the golden pocket ratio, is considered a strong support area.

Therefore, if the ton returns to that level, it can provide the necessary strength to advance the price increase. From the perspective of things, hitting $5.52 could send the altcoin up to $6.19 – the 38.2% Fib level, which is also an important position.

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If this happens, Toncoin may rise to $7.27. The last time a cryptocurrency reached that level was after Binance listed its Telegram-native token. However, if the ton experiences a rejection at $6.19, the forecast may not materialize. Instead, it could drop to $4.44.