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TON reaches fatigue level, What it mean for investors?
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Currently, the overall cryptocurrency market is going through a price correction, and top digital assets like Bitcoin, Ethereum, BNB, and Solana are also struggling to gain momentum.
Amid this price correction, an on-chain analytic firm, CryptoQuant, made a post on X highlighting that Toncoin (TON) has reached its fatigue level, indicating a potential drawdown in price soon.
TON reaches to fatigue level, CryptoQuant
The fatigue level is identified by the 180-day Sharpe Ratio. In their post, they explained that “The traditional Sharpe Ratio calculates the excess return of an investment by dividing it by its standard deviation, reflecting the volatility of the investment’s returns.”
When we look at TON’s volatility using the Adjusted Sharpe Ratio analysis, we notice that its 7-day volatility has consistently been higher than its 30-day volatility for the past two and a half years.
This means that TON’s price tends to swing more dramatically in the short term compared to its longer-term trends, as shared by CryptoQuant.
They also added that this trend is likely influenced by the speculative nature of the coin and the growing number of Telegram users involved in DeFi (Decentralized Finance) and GameFi (Gaming Finance).
These factors suggest that TON’s price is highly sensitive to sudden changes, which can lead to significant fluctuations in its value.
TON technical analysis and key levels
According to expert technical analysis, TON is looking bullish and may hit $9 soon. The reason behind this bullishness is the breakout of a bullish cup and handle price action pattern on a daily time frame.
As of now, TON is retesting its breakout level. If the TON token fails to sustain and closes below the $7.1 level on the daily time frame, it may fall further in the coming days.
