2025-02-18 12:30:56 by AMBCrypto

Journalist Posted: February 18, 2025 Share this article TON’s price action indicates accumulation, as reflected in the 180-day Sharpe Ratio. TON is showing signs of accumulation and potential for a price rebound. Toncoin [TON] has been at the center of market attention due to its significant price fluctuations and high-risk exposure. In recent months, multiple indicators have pointed towards potential accumulation, despite a prolonged decline in its value.  High risk, yet a glimmer of hope In early 2025, the Risk Exposure Ratio for TON surged to its highest levels, surpassing 0.24. This increase indicates that leveraged positions now make up a significant portion of TON’s DeFi activity. Despite the ongoing price decline, the high-risk exposure ratio suggests that a deleveraging phase could be underway. Source: CryptoQuant As the price continues to decrease, the market’s current over-leveraged position may lead to forced liquidations. However, a decline in the Risk Exposure Ratio could indicate market stabilization, which might set the stage for healthier price action. The current situation reflects a balance between high risk and the potential for a price recovery, depending on whether the deleveraging process resolves or persists. Shifting tides of market sentiment Looking at the medium-term Normalized Risk Metric (NRM), TON’s price movements indicate a shift toward an accumulation phase. Source: CryptoQuant In December 2024, there was a noticeable decline in NRM, signaling that the market was transitioning from a high-risk environment to one that favors accumulation. The price action during this period shows the market is likely absorbing sell pressure and preparing for a potential rebound. The NRM chart highlights that current levels align with previous accumulation zones that historically preceded price recoveries. If this pattern continues, TON may be poised for a recovery as risk levels decrease and buying interest increases. Calm before the storm? Further analysis for TON revealed a significant decrease in the 30-day volatility, at 80.47% at press time. This decline followed the price drop and suggested a potential exhaustion of selling pressure. Source: CryptoQuant When volatility decreases, it often precedes sharp price movements, either upwards or downwards. The lower volatility phase, combined with a more stable price action, could indicate that selling pressure is fading, creating an environment ripe for a rebound. Historically, such periods of low volatility have often led to price increases. Signs of bottoming and accumulation The Sharpe Ratio for TON showed a significant drop, reaching multi-month lows. This indicated that the risk-adjusted returns have been diminishing, highlighting a period of lower profitability for investors. Source: CryptoQuant However, this sharp decline in the Sharpe Ratio also points to a possible bottoming phase, where risk-adjusted returns may start improving as the market stabilizes. Also, similar low Sharpe Ratio levels have marked accumulation zones, suggesting that investors may be positioning themselves for a future rally. As the risk environment normalizes, the Sharpe Ratio may begin to improve, providing further confirmation of a rebound. TON’s future potential Finally, the long-term NRM chart reinforced the idea of accumulation. The recent low NRM levels suggested that the market was in a consolidation phase, potentially signaling a bottoming out. Source: CryptoQuant These low risk levels indicated that the market was transitioning into a low-risk environment, which often precedes price increases. Given the alignment of the long-term NRM with previous accumulation phases, it is possible that TON is entering a new cycle of price appreciation. In conclusion, TON is showing strong signs of positioning for a rebound. Share