Toncoin has consolidated its position among the top 10 coins. However, given the weakness across the board, TON, the local currency, did not escape the blows. Although losses can be contained, the coin is down nearly 36% from its 2024 highs, finding strong support at around $4.5.
TON buyers are confident that prices will recover, crossing $6 in the coming sessions. However, its performance will be shaped by market sentiment and how Bitcoin reacts to local support and resistance lines.
High Sharpe ratio per ton
While there are external factors to consider, says one analyst Notes The Toncoin Sharpe ratio is on the rise and is now in the “low risk zone”. Based on analyst assessment, TON offers a suitable balance between risk and reward for token holders and investors.
Analysts use the Sharpe ratio to measure the risk-adjusted rate of return. The return is higher when it rises, even after taking existing risks into account.
How prices perform depends on prevailing sentiment and adoption, among other things. As of mid-October, 77% of all TON traders expect prices to rise, looking at CoinMarketCap reconnaissance.
The analyst added that the improvement is significantly better than last year when the Sharpe ratio was in the “high-risk” zone. It remains to be seen whether prices will recover in the coming sessions.
Number of Toncoin Holders Exceeds 90 Million: Will Bitcoin Rally Spark Demand?
Over the past few trading months, TON has grown in popularity, cementing its place among the top 10. The rapid assessment comes after the success of some of its protocols, including the click-to-earn game, Hamster Kombat. At the same time, interest in the meme currency is taking shape in Toncoin, given the trading volume associated with dogs.
According to on-chain data, Toncoin’s growth has expanded its user base. As of early October, there were Nearly 90 million TON holders, up 24X over the past year. With the adoption of Toncoin decentralized applications, the more users choose to participate, and purchase TON, resulting in higher prices.
If Bitcoin rises, crossing $66,000 and $70,000 in the coming sessions, the probability of TON rising in tandem will be higher. As mentioned earlier, a decisive break above $6 could hold the next leg up to the June 2024 highs.