Recently, on-chain data has highlighted that Toncoin investors are still holding onto a substantial amount of unrealized profit, despite recent declines in the asset’s price.
Glassnode, a renowned on-chain analytics firm, delved into some key indicators linked to Toncoin in a new update on X. One pivotal metric they examined is the “Realized Price,” which essentially reflects the average cost basis of investors on the TON network.
If the cryptocurrency’s current price is above this Realized Price, it suggests that, overall, holders are seeing a net unrealized profit. Conversely, if it’s below, it points to more prevalent losses in the market.
The accompanying chart from Glassnode demonstrates the trend in Toncoin’s Realized Price over recent years.
What stands out in the chart above is that Toncoin’s current price has consistently remained above the Realized Price, indicating that most investors have been sitting on gains for quite a while. This scenario persists even after Toncoin’s recent downturn.
Historically, the Realized Price has acted as a solid support level. This is likely because investors are inclined to purchase more when prices dip towards their cost basis, especially if they maintain a bullish outlook on the market.
Currently, the Realized Price is pegged at $2.43, noticeably lower than the market price. According to Glassnode, history shows this level can trigger significant buying interest.
Another key indicator from the analytics firm is the Market Value to Realized Value (MVRV) Ratio, which compares Toncoin’s market price with its Realized Price.
From the depicted chart, it’s evident that the MVRV ratio recently slid to about 1.54. As Glassnode points out, this ratio indicates that, on average, investors are reaping around 54% in unrealized profits.
Though the market has thus far weathered the recent downturn, it doesn’t preclude instances of panic selling, especially for Toncoin. The Realized Loss chart illustrates that investors who bought at peak prices encountered substantial losses when the market corrected.
As of now, Toncoin is trading at approximately $3.77, marking a 3% rise over the past 24 hours.
