Toncoin Signals Accumulation Phase as Open Interest Hits Nine-Month Low – What’s Next?
Toncoin (TON) appears to have now entered a notable phase in its market cycle, presenting potential opportunities for investors. A recent analysis by CryptoQuant analyst Joao Wedson highlights that TON has moved into a favorable risk zone for accumulation, as indicated by the Normalized Risk Metric (NMR). This metric evaluates an asset’s price risk relative to historical data, providing a clearer picture of whether the current price levels are suitable for investment or if caution is warranted. Toncoin Current Market Outlook The 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 exposure. A normalized score ranging between 0 and 1 indicates the level of risk, with values closer to zero suggesting a lower chance of price decline. According to Wedson, TON’s current placement in the green zone signals reduced risk, making it an appealing opportunity for investors seeking long-term exposure to the asset. The analysis further suggests that while the medium and long-term risk profiles appear favorable, there remains a possibility for TON’s price to revisit historically significant support zones, often referred to as the “blue zone” on price heatmaps. Toncoin (TONP Normalized Risk Metric (NMR). | Source: CryptoQuantHistorically, these levels have served as price floors and accumulation points for investors expecting future price appreciation. BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.comOpen Interest Decline and Market Volatility Trends Another CryptoQuant analyst, Maartunn, has added further context to Toncoin’s current market stance. According to his observations, TON’s Open Interest (OI) in the futures market has decreased to $141 million, marking the lowest level observed in the past nine months. Open Interest refers to the total value of outstanding futures contracts and is a key indicator of market sentiment and participation. A decline in Open Interest generally signals reduced market activity and lower volatility. While this trend is specific to TON, it reflects a broader pattern across the cryptocurrency market as the year comes to a close. Historically, periods of low Open Interest are often followed by significant price movements, either upward or downward, once liquidity returns to the market. Lower Open Interest combined with Toncoin’s favorable risk metrics may suggest a period of price stability and reduced volatility. Risk-Adjusted Returns and Drawdowns: A Look at Unrealized Profits in TON “The Open Interest and Funding Rates chart complements this narrative by highlighting steady open interest levels, which demonstrate sustained 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 Samuel Edyme Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics. When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.” PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. 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