Toncoin’s Recovery Phase

Toncoin’s Sharpe ratio shows a transition to a recovery phase. The cryptocurrency has surged by 3.41% over the past day after four consecutive days of uptrend.

After hitting a monthly low of $4.7, Toncoin [TON] exhibits signs of recovery. Over the last four days, Ton has experienced sustained gains, reaching a high of $5.66. Currently, Toncoin is trading at $5.64, marking a 3.41% increase on daily charts.

The current market conditions have analysts optimistic about a potential price recovery. According to Cryptoquant analysis, the Sharpe ratio suggests that TON is transitioning into a recovery phase.

Is Toncoin Set for Recovery?

Cryptoquant analyst Shiven Moodley noted that the Toncoin Sharpe ratio has recently declined from its yearly peak, indicating a moderation in risk-adjusted returns as the market stabilizes, anticipating a potential Altseason. This stability reflects a transition from a downturn to a recovery phase, where both long-term holders and short-term traders are capitalizing on the renewed market interest and optimism.

The Sharpe ratio indicates a buying opportunity for long-term investors aiming to leverage Ton’s market resilience and growth potential. This recovery is supported by rising Open interest and funding rates, indicating increasing participation within the Ton ecosystem, crucial for market recovery. A balanced funding rate further reaffirms the analysis that both long and short positions indicate market stability.

Ton Chart Insights

Current market conditions suggest Toncoin is set for a price recovery. The adjusted price DAA divergence has stayed positive over the last week, signaling healthy network usage with increased on-chain activity, particularly active addresses and transactions.

Higher demand and a greater transaction volume reflect rising interest in Ton. In the last 24 hours, large transactions surged from 1.01k to 1.94k, equating to a 92.08% change, indicating whale activity is rising and the market is gearing up for growth.

Is your portfolio green? Check the Toncoin Profit Calculator

With the Sharpe ratio indicating a buying opportunity and strengthening fundamentals, Toncoin appears poised for recovery. If the positive sentiment persists, we might see Ton reclaim $5.8. A breakthrough from this point could lead Ton to $6.4; however, a failure to hold the current trend could see the altcoin dip to $5.2.