Toncoin (TON) price has been mostly resilient after emerging from a downtrend, but the coin’s rise may soon end. The sharp rise in the price of Toncoin (TON) has caused the market to overheat, and this could potentially cause a market top to form and begin a correction.
Toncoin faces restricted growth potential
The recent rise in Toncoin price may give way to a reversal that will lead to consolidation or correction. This is hinted at by the on-chain metric of the share of the total supply of coins that are in profit. It suggests that TON is close to reaching a market top, that is, the maximum point of an uptrend before a possible reversal. Typically, a market top is said to occur when more than 95% of the supply of an asset is in the profit zone. At the moment, more than 90% of the circulating supply of the token is in profit.
In addition, the asset is now overvalued according to the short-term MVRV ratio. This metric evaluates the ratio of the market and realized value of an asset. It gives an idea of the investor’s profit or loss. Toncoin’s seven-day MVRV is 5.2%, signaling profits, potentially driving sales. Historically, TON corrections occur in the MVRV range of 4% to 12%, which is considered a risk zone for the coin. Thus, an overvalued asset has little chance of rising from current levels. This could lead to a price correction as the market cools.
TON forecast: another short-lived rise before a fall
Toncoin price could still rise slightly if it closes above former support at $6.04. However, this growth may be stopped by the resistance level of $6.50.
This is due to the fact that by that time TON will confirm the top of the market and will be at risk according to the MVRV coefficient. As a result, the price may fall to $6.0 or even to $5.4. However, if TON holders decide not to sell, but to hold their assets, then the altcoin may overcome the $6.5 mark. This will refute the bearish scenario and allow the price to continue rising.
