Will Toncoin Record-Breaking Active Addresses Impact Its Bearish Price Trend?

Toncoin (TON) recently hit a record number of active addresses, surpassing Bitcoin and Ethereum on August 26. Despite this surge in network activity, TON price remains in a bearish trend, with many holders currently at a loss.

Reformatted News:

Toncoin (TON) has recently experienced a surge in network activity, marked by a significant increase in active addresses. This spike, which set a new record for the cryptocurrency, was largely driven by developments surrounding Telegram’s founder. Despite this impressive growth in user engagement, TON’s overall price trend remains bearish, raising questions about the long-term impact of these metrics on its market performance.

A Historical Number of Active Addresses

Data from CryptoRank highlighted a major increase in active addresses on the Toncoin network on August 26, a day that saw the number of active addresses surpass the combined total of Bitcoin and Ethereum. This surge was triggered by the arrest of Telegram’s founder, leading to panic and heightened activity within the Toncoin community.

Further analysis by IntoTheBlock confirmed this spike, revealing that active addresses on the Toncoin network reached over 440,000 on August 26 and continued to rise, surpassing 600,000 by August 29. This level of network activity marked the highest in Toncoin’s history. Additionally, the network’s seven-day active addresses crossed 3 million, a figure that exceeded Ethereum’s and was only outpaced by Bitcoin’s 3.7 million.

TON’s Price Struggles Continue

Despite the remarkable increase in active addresses, Toncoin’s price has struggled to recover from its recent declines. Although brief uptrends were observed on August 27 and 28, they were not sustained, leading to further losses in subsequent trading sessions. As of the latest analysis, Toncoin ended its last trading session with a decline of over 1%, and this downward trend continued at the time of reporting.

Toncoin’s Relative Strength Index (RSI) was around 40, indicating that the asset remains in a bearish phase. However, the current price level may present a buying opportunity for traders, especially since Toncoin has previously established strong support around the $6 mark.

Toncoin Holders Go Underwater

An examination of Toncoin’s 30-day Market Value to Realized Value (MVRV) ratio provides insight into the current state of holders. As of now, the MVRV ratio for Toncoin is approximately -7.3%, suggesting that many holders are currently at a loss relative to their purchase prices.

Earlier in the month, Toncoin’s MVRV ratio briefly climbed into positive territory, allowing holders to realize profits after a prolonged period of losses. However, the ratio has since fallen back below zero, indicating that the asset may be undervalued at present.

Conclusion

The recent surge in active addresses on the Toncoin network is a significant development, but its impact on the cryptocurrency’s price remains uncertain. While the increased activity highlights strong user engagement, TON’s price continues to struggle, and many holders are currently underwater. The coming weeks will be crucial in determining whether this record-breaking activity can translate into a positive price trend for Toncoin.

Our creator. creates amazing NFT collections! 
Support the editors - Bitcoin_Man (ETH) / Bitcoin_Man (TON)

Pi Network (Guide)is a new digital currency developed by Stanford PhDs with over 55 million participants worldwide. To get your Pi, follow this link https://minepi.com/Tsybko and use my username (Tsybko) as the invite code.

Binance: Use this link to sign up and get $100 free and 10% off your first months Binance Futures fees (Terms and Conditions).

Bitget: Use this link Use the Rewards Center and win up to 5027 USDT!(Review)

Bybit: Use this link (all possible discounts on commissions and bonuses up to $30,030 included) If you register through the application, then at the time of registration simply enter in the reference: WB8XZ4 - (manual)