Toncoin's MVRV (Market Value to Realized Value) ratio, a measure of investor returns, suggests that the altcoin has been undervalued in recent weeks.
As of press time, TON's 30-day and 90-day MVRV are negative 0.26% and negative 5.38%, respectively. On-chain data indicates that Toncoin is undervalued. Notably, short-term investors are also increasing their selling.
Toncoin may be undervalued
Over the past week, net inflows from whales holding Toncoin have dropped by 115%, despite a slight 1% increase in the coin's value. Net inflows from whales are an important indicator of market trends, providing information about the difference between the volume they buy and sell over a given period of time. When this inflow decreases, it often signals that whales are reducing their holdings, increasing selling pressure.
Short-term investors could push prices down further
Short-term Toncoin (STH) investors are also reducing their holding periods, increasing the risk of the coinâs value falling further. According to data from IntoTheBlock, the average holding period of these investors has decreased by 7% over the past month.
Short-term investors, who typically hold assets for less than 30 days, tend to sell quickly to protect profits or avoid losses in anticipation of falling prices. A sharp decline in holdings from the STH group is often a sign of weakening demand, adding to the downward pressure on the asset.
