"TON's Recovery: Accumulation, Reduced Selling Pressure, and Potential Price Rebound"

Toncoin (TON) is showing signs of potential recovery, as recent market dynamics indicate accumulation and reduced selling pressure. Analysts are speculating about upcoming price movements amidst shifting risk landscapes.

In early 2025, the Risk Exposure Ratio for TON surged to its highest levels, surpassing 0.24. This increase suggests that leveraged positions now make up a significant portion of TON’s DeFi activity. Despite the ongoing price decline, the high-risk exposure ratio hints at a possible deleveraging phase, which could lead to market stabilization and healthier price action.

The Normalized Risk Metric (NRM) for TON indicates a shift towards an accumulation phase. In December 2024, there was a noticeable decline in NRM, signaling a transition from a high-risk environment to one that favors accumulation. The price action during this period suggests that the market is absorbing sell pressure and preparing for a potential rebound.

Further analysis revealed a significant decrease in the 30-day volatility for TON, which followed the price drop and suggested a potential exhaustion of selling pressure. When volatility decreases, it often precedes sharp price movements, either upwards or downwards. The lower volatility phase, combined with a more stable price action, could indicate that selling pressure is fading, creating an environment ripe for a rebound.

The Sharpe Ratio for TON showed a significant drop, reaching multi-month lows. This indicated that the risk-adjusted returns have been diminishing, highlighting a period of lower profitability for investors. However, this sharp decline in the Sharpe Ratio also points to a possible bottoming phase, where risk-adjusted returns may start improving as the market stabilizes. Similar low Sharpe Ratio levels have marked accumulation zones, suggesting that investors may be positioning themselves for a future rally.

Finally, the long-term NRM chart reinforced the idea of accumulation. The recent low NRM levels suggested that the market was in a consolidation phase, potentially signaling a bottoming out. These low risk levels indicated that the market was transitioning into a low-risk environment, which often precedes price increases. Given the alignment of the long-term NRM with previous accumulation phases, it is possible that TON is entering a new cycle of price appreciation.

In conclusion, TON is showing strong signs of positioning for a rebound. As indicators point to a possible recovery, investors should keep a close watch on TON’s risk