- TON could rise to $8 if the price breaks the $7.5 resistance level
- Statistics seemed to indicate a possible outbreak
Toncoin was valued at $7.35 on the charts at the time of writing, down almost 4% in the past 24 hours. The market cap was $17.8 billion, with the latest price drop also reflecting changes in volume.
According to Santiment’s active addresses and market circulation data, Toncoin recorded a notable spike in the number of active addresses and circulating supply – a spike that could signal a significant price increase, as greater network activity and liquidity typically precede a breakout.
The active address steadily increased from around 50,000 in early May to over 75,000 at the time of writing – a 50% increase in the number of new users interacting with Toncoin’s ecosystem. The circulating token supply gradually increased from 1.9 billion at the end of April to almost 2.3 billion.
With both active addresses and circulating supply rising, TON is likely to stage a strong rally if it breaks through the $8 resistance level. This level has historically rejected several recent upswings.
Source: Santiment
Findings from market value to realized value ratio
AMBCrypto further analyzed Santiment’s MVRV data, with the same pointing to several peaks in late March and May – a sign that investors have realized large unrealized gains and taken their profits. At the time of writing, the MRVR was valued below 3, indicating a possible renewal of bullish momentum as continued buying pressure on the charts increases.
Source: Santiment
Tug of war between bulls and bears
Furthermore, according to Coinglass’ long/short ratio, there have been frequent swings above and below the 1 equilibrium over the past 30 days. In fact, the ratio rose above 1.0 several times, indicating high volume on the long position side while the short positions were temporarily overwhelmed.
Source: Coinglass
What next for TON?
Based on the climbing activity levels, the reasonably valued MVRV and the ongoing battle between long positions and short positions, the pendulum could be tilting in favor of the bulls. Therefore, TON can be expected to rise above $8 soon.
However, if the bears gather enough momentum, the price could easily consolidate between $7 and $8.