CryptoQuant, a leading cryptocurrency analysis company, recently conducted an in-depth analysis of the Toncoin (TON) price. The study focused on TON's price volatility and its Adjusted Sharpe Ratio, which offers valuable information for speculators.
The traditional Sharpe Ratio, which calculates the excess return of an investment relative to its standard deviation, was the main focus of the analysis. This ratio reflects the volatility of the investment's returns.
CryptoQuant's analysis revealed that TON's 7-day volatility has consistently exceeded its 30-day volatility over the last two and a half years. This shows that the TON price is more sensitive to sudden fluctuations in the short term compared to long-term activity.
The study also highlighted the speculative use of the coin and the increase in the number of Telegram users participating in DeFi and GameFi. These factors indicate a significant volatility impact on the token at a fundamental level.
According to the analyst, currently, based on the 180-day Sharpe Ratio analysis, TON price has reached a fatigue level. According to analysts, this may indicate a potential bear movement in the near term.
*This is not investment advice.