Toncoin (TON) Returns To ‘Low-Risk Area’ Here’s What It Means

CryptoQuant’s Analyst JA Maartun highlighted a key observation in Toncoin’s (TON) price. In a Quicktake post, the analyst noted that TON is back in the low-risk area. This region is favorable for TON investors, indicating that returns might surpass assumed risk.

Toncoin is Less Volatile from a Year Ago

The analyst acknowledged that Toncoin has experienced fluctuations this year. Although Toncoin currently sits at $5.25, the price moved from $2 to $8 within the year.

“The Sharpe Ratio Risk Indicator for TON has entered a Low-Risk area for the first time in 12 months,” says Maarten.

The Sharpe Ratio Risk indicator assesses an asset’s performance by comparing return to its risk. The analyst highlighted $5.25 as Toncoin’s current Low-Risk zone. Historical data indicates that Toncoin in this low-risk area usually drives a final leg of correction before finding a solid bottom. As a result, TON may continue its declining trend in the second half of October until buyers intervene to force a price reversal.

Maartun emphasized that TON looks healthy again, with the Sharpe Ratio cooling down. He also spotlighted the number of unique users rising above 100 million as a catalyst. However, he said he wouldn’t advise buying directly at this moment. Instead, he said investors could add TON to a watchlist or wait for an extremely low-risk signal before buying TON.

How Toncoin’s Price Evolved in the Past Year

Toncoin emerged as the top-performing crypto in the second quarter, standing out amidst market weakness. Between April and May, investors saw a price increase in Toncoin from $4.85 to $7.18.

The Ecosystem Catalysts on Toncoin Growth

The surge in Toncoin’s price during Q2 hinges on its partnership with Telegram. This integration has made it easier for users to engage with TON services directly through their existing messaging app, boosting the blockchain’s visibility.

The “Hamster Combat” game also attracted a large user base, surpassing popular titles like Candy Crush.

Furthermore, Toncoin partnered with Tether to enable smooth peer-to-peer payments using USDT across borders. This collaboration enhanced Toncoin’s utility, further increasing its adoption among users.