Toncoin (TON) sell-offs are increasing: Onchain data is scary.
Toncoin’s market value/realized value (MVRV) ratio, which measures the profitability of its investors, shows that the altcoin has been undervalued in recent weeks.
As of the writing of the news, TON’s 30-day and 90-day MVRV ratios are minus 0.26 percent and minus 5.38 percent, respectively. According to the onchain data in question, Toncoin is undervalued. In addition, short-term investors have increased their selling tendency.
Toncoin ($TON ) may be undervalued
Last week, net flows in Toncoin whales fell by 115 percent despite a 1 percent increase in price. Whales are critical indicators of market trends. Net flows, on the other hand, can give an idea of market sentiment, the difference between what they buy and sell over a certain period of time.
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When the net flow of a cryptocurrency decreases, it indicates that whales are selling their holdings, which is a sign of selling pressure and a price drop.
Short-term investors may bring downside
Short-term (STH) TON investors have also reduced their holding periods for the token, increasing the risk of a downside. According to IntoTheBlock, holding periods have decreased by 7 percent in the last month.
STH holders, who typically hold assets for less than 30 days, may sell when they want to protect profits or avoid losses from a projected price drop. A decrease in STH holdings usually indicates that demand is decreasing, adding more downward pressure to the asset’s price.
