Pavel Durov’s cryptocurrency may be seriously affected

In recent days, Toncoin (TON) has lost significantly in value, and the outlook does not bode well for the token. The threat of a «death cross» is on the horizon. This is a bearish signal that appears when the 50-day exponential moving average (EMA) crosses the 200-day EMA from top to bottom. This pattern is often considered to be a sign of negative momentum and a prolonged price decline.

The growing bearishness is already evident in TON’s behavior, and the dynamics of the 50-day and 200-day EMAs about to cross increases the likelihood of a significant price drop.

The ratio of network value to transaction volume NVT (Network Value to Transaction) provides additional alarming signals. This metric determines whether an asset is under- or overvalued at current price levels. High values are a bearish sign. They indicate that the price increase is not supported by an increase in transaction flow. Accordingly, this may indicate that the asset is overheated and warn of the threat of a correction. Overvaluation combined with low transaction volume often portends a possible price drop.

In the case of Toncoin, the NVT value reached a seven-month peak. The historically high level indicates that the cryptocurrency is overvalued and may soon undergo a correction, especially given the bearish technical indicators.

The asset has already lost 13% after a failed attempt to overcome resistance at $ 5.96. The formation of the «death cross» also suggests a prolonged decline. TON may fall below the support level of $ 4.86. From here, a further decline to $ 4.61 will be possible, which will mark a monthly low.