Toncoin (TON) appears to have now entered a significant phase in its market cycle, offering potential opportunities for investors. recent Analysis By Joao Wedson, CryptoQuant analyst, emphasizes that TON has moved into the favorable risk zone for accumulation, as indicated by the Normalized Risk Measure (NMR).
This measure evaluates the asset's price risk relative to historical data and provides a clearer picture of whether current price levels are appropriate for investment or caution.
The current market outlook for ToonCoin
NMR uses moving averages such as the 50-day and 374-day simple moving averages (SMA) along with logarithmic differences in price data to determine risk.
A normalized score between 0 and 1 indicates the level of risk, and values close to zero indicate the possibility of a price decline. According to Wedson, TON's Current placement In the green zone it represents reduced risk, making it an attractive opportunity for investors looking for long-term exposure to the asset.
Further analysis shows that while the medium and long-term risk profiles look favorable, there is a possibility that the price of TON will revise historically. Significant support areasoften referred to as the “blue zone” in price heat maps.
Historically, these levels have served as price floors and accumulation points for investors who expect future price increases.
The trend of reducing open interest and market fluctuations
Another CryptoQuant analyst, Maartunn, has added more context To the current market position of Toncoin. Based on his observations, TON's open interest (OI) in the futures market has fallen to $141 million, the lowest level seen in the last 9 months.
Open interest refers to the total value Deferred futures contracts and is a key indicator of market sentiment and participation.
A decrease in open interest is generally a sign of decline Market activity and lower volatility while this trend is specific to TON, reflecting a Wider pattern Across the cryptocurrency market as the year draws to a close.
Historically, periods of low open interest are often followed by significant price moves, either up or down, after liquidity returns to the market.
Lower open interest combined with Toncoin's favorable risk metrics may indicate a period of price stability and reduced volatility.
Risk-adjusted returns and withdrawals: A look at unrealized gains in TON
The open interest rate and investment chart complements this narrative by highlighting consistent open interest levels, which demonstrate sustainable participation in the TON ecosystem. – by @ShivenMoodley
more… pic.twitter.com/DIpNabROij
– CryptoQuant.com (@cryptoquant_com) December 24, 2024
Featured image created with DALL-E, chart from TradingView
