- TON fell by 11% to $5.12 after the arrest of Pavel Durov, the bottom since January 1.
- Metcalfe's valuation means that TON could also be undervalued with robust community exercise.
- Technical indicators present bearish dynamics with the potential for additional worth declines.
Toncoin (TON) has seen a drop in worth following the arrest of Telegram founder and CEO Pavel Durov in France. On August 26, TON fell 11% to shut at $5.12, the bottom stage since Might 1. The decline has raised questions on the way forward for the foreign money, however can also current a powerful risk-reward scenario for buyers.
TON beforehand hit an all-time excessive of $8.17 on June 14. Nevertheless, the latest drop to $5.12 is bearish for the foreign money. Regardless of this decline, the present worth of $5.37 places TON nearer to the decrease finish of its Metcalfe valuation, which at present stands at $4.60. Metcalfe's higher worth vary, in the meantime, is ready at $18.40.
Calculated primarily based on the variety of lively distinctive addresses within the TON community, Metcalfe's valuation bands present a option to assess the worth of TON relative to its consumer base.
Apparently, the TON community hit a file excessive of 1.93 million lively addresses on August 28, indicating robust consumer engagement regardless of the latest worth drop.
As TON approaches the decrease Metcalfe band, it seems that the foreign money could also be undervalued relative to its community exercise, doubtlessly offering a positive funding alternative.
Nevertheless, Toncoin's worth actions present that bearish sentiment is extra frequent. The worth momentum indicator, the Transferring Common Convergence Divergence (MACD), is beneath the sign line and is constantly trending down.
This transfer down follows the downward pattern of the MACD histogram, which strengthens the bearish argument as the quantity of the bearish bars of the MACD histogram will increase.
Furthermore, the Relative Power Index (RSI), which measures the pace and modifications of worth actions, is at present close to 40. This place means that TON is neither oversold nor overbought, however is leaning in the direction of a weaker market place.
The mix of those indicators factors to the chance of continued downward strain on the worth of TON except a big reversal happens.
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