The Open Network coin from Telegram (TON) is one of many altcoins on the crypto market that has seen a steep drop this past week. The asset is notably down 21% in the last seven days and hasn’t picked up much steam yet to rebound. Trading volume for the coin is also down, showing that buyers are hesitant to swoop up its current dip.
Despite its current drop, some analysts suggest that the TON coin is undervalued, and investors should take advantage. According to on-chain data, readings from TON’s Market Value to Realised Value (MVRV) ratio show that the altcoin is currently undervalued. This flashes a signal to buy for investors, and whales are reportedly eyeing the token for massive purchases.
On-Chain Data Suggests That TON is Undervalued
In addition, data over the weekend revealed that TON’s MVRV ratios assessed over different moving averages are negative. Its MVRV ratios for the 30-day and 90-day moving averages were -6.39% and -6.87%, respectively on Sunday. This suggests that the coin’s current market value is less than the average value that most investors purchase.
While this is largely due to the underperformance of the entire crypto market last week, many investors are bullish on a rebound for all coins, including TON. Thus, it is possible that buying the dip may not be a harmful idea for investors of The Open Network. Firstly they should be cautioned to research the TON coin further before making such an investment. Data around a coin rarely remains static, and it’s important to note that before purchasing.
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Furthermore, TON has had a very positive past few months before its recent dip. Since February, the token has risen over 100% in price, doubling its previous $2 valuation. While the recent drop could be caused by the overall market crash, one should also note that perhaps the token hit a temporary resistance level. Keep an eye on the TON network’s socials for more updates around the token that could create bullish hype.
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