Toncoin (TON) continues to face challenges, but there are reasons why it could be a good buy. After the arrest of Telegram CEO Pavel Durov, TON’s value plummeted, leading to a 9% decline in price. However, key on-chain metrics indicate a potential rebound.
Toncoin’s MVRV ratios, which compare the current market price to the average price of its circulating tokens, suggest that the altcoin is currently undervalued. The 7-day and 30-day MVRV ratios stand at -5.71% and -9.10%, respectively. Historically, a negative MVRV ratio has signaled a buying opportunity.
Despite the recent challenges, TON’s derivatives market remains resilient. Futures open interest has increased by 46% since Durov’s arrest, indicating growing participation from traders opening new positions. Additionally, the positive funding rates suggest increasing demand for long positions.
However, bearish sentiment remains in the spot market. Technical indicators point to a surge in selling pressure, overshadowing buying activity. The Directional Movement Index (DMI) shows a strong downtrend, and the Relative Strength Index (RSI) indicates elevated selling activity.
If selling pressure persists, TON’s value could drop to $4.73. On the other hand, a bullish shift could drive the price up to $5.47.
Overall, despite the struggles faced by Toncoin, the undervalued MVRV ratios and the resilience of the derivatives market make it an interesting option for traders. However, it’s important to consider the bearish sentiment in the spot market before making any investment decisions.