Toncoin (TON), the cryptocurrency native to the TON Blockchain, is currently under scrutiny as market analysts predict an imminent price correction. After a period of substantial gains, TON now faces significant resistance at $6.04, a level that could determine its short-term trajectory. This price point is particularly crucial because it has historically acted as both support and resistance, influencing subsequent price movements.
Market analysts note that over 90% of Toncoin's circulating supply is currently in profit, a condition often associated with market tops. This situation is further compounded by the short-term Market Value to Realized Value (MVRV) ratio, which currently stands at 5.2%. Such a high MVRV ratio suggests that many investors might soon start to sell off their holdings to realize gains, potentially leading to a price correction.
The technical analysis indicates that if TON surpasses the $6.04 resistance, it might briefly climb to higher resistance at $6.50. However, this increase is expected to be short-lived as the MVRV ratio enters a danger zone, typically leading to sell-offs and subsequent price declines. Should the majority of holders choose to hold (HODL) instead of selling, there might be a chance for the price to break past $6.50, although this scenario is less likely given the current market indicators.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
