TON dropped 11% to $5.12 amid Pavel Durov’s arrest, lowest since May 1.
Metcalfe valuation suggests TON might be undervalued with strong network activity.
Technical indicators show bearish momentum, with potential for further price decline.
Toncoin (TON) has experienced a decline in value following the arrest of Telegram’s Founder and CEO, Pavel Durov, in France. On August 26, TON’s price dropped by 11%, closing at $5.12, the lowest level recorded since May 1. The decline raised questions about the currency’s future but may also present a strong risk-reward situation for investors.
TON had previously reached an all-time high of $8.17 on June 14. However, the recent fall to $5.12 marks a downturn for the currency. Even with this decline, the current price of $5.37 places TON closer to the lower band of its Metcalfe valuation, which currently stands at $4.60. The upper Metcalfe valuation band, meanwhile, is set at $18.40.
Source: CryptoQuant
The Metcalfe valuation bands, calculated based on the number of active unique addresses on the TON network, provide a way to assess TON’s value in relation to its user base.
Interestingly, the TON network saw a rec…
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