Toncoin (TON) will begin a correction once it reaches this level.
The $6 level is an important resistance that could slow down Toncoin's growth
Short-term MVRV signals overvaluation, which promises price correction
TON is close to forming a top; more than 90% of the supply is already in profit.
Toncoin (TON) price has been mostly resilient after emerging from a downtrend, but the coin's rise may soon end
The sharp rise in the price of Toncoin (TON) has caused the market to overheat, and this could potentially cause a market top to form and begin a correction.
Toncoin has little room for maneuver
The recent rise in Toncoin price may give way to a reversal that will lead to consolidation or correction. This is hinted at by the on-chain metric of the share of the total supply of coins that are in profit. It suggests that TON is close to reaching a market top, that is, the maximum point of an uptrend before a possible reversal. Typically, a market top is said to occur when more than 95% of the supply of an asset is in the profit zone. At the moment, more than 90% of the circulating supply of the token is in profit.
In addition, the asset is now overvalued according to the short-term MVRV ratio. This metric evaluates the ratio of the market and realized value of an asset. It gives an idea of the investor's profit or loss. Toncoin's seven-day MVRV is 5.2%, signaling profits, potentially driving sales. Historically, TON corrections occur in the MVRV range of 4% to 12%, which is considered a risk zone for the coin.
