Market indicators suggested TON could see a trend reversal and make gains made a moderate recovery on the price charts. During this period, the altcoin surged from a local low of $4.7 to a high of $6.09. However, over the last 3 days, the altcoin retraced somewhat though. In fact, at the time of writing, Toncoin was trading at $5.66 – A decline of 0.98% over the last 24 hours.This market volatility has left analysts talking.
One of them is Cryptoquant analyst Toncoin’s risk exposure ratio rises. In his analysis, Wedson posited that TON’s risk exposure ratio currently suggests that the risk level within the Toncoin network is moderately high. According to him, the reason behind this uptick is that a significant portion of TON’s TVL has been allocated to various areas such as lending, derivatives, and options which are highly exposed to market liquidity risks. As such, since Toncoin’s last major price rally, the risk exposure ratio has seen a sustained uptrend. This upward movement is a sign of rising capital inflows into leveraged financial products such as loans and derivatives. Although this hike may bring stability concerns, it can also signify market confidence. A rising demand for derivates and leverages means growing market optimism – A sign of confidence in market trend and investors’ bullish sentiments. However, over-leveraged networks can magnify losses during bearish trends. Thus, this aspect can be viewed positively by speculative traders who take the rising demand to capitalize on derivative markets. While the uptick in the risk exposure ratio could signal caution as it correlates with higher volatility, it can also allude to market confidence and bullish sentiment.We can see this bullish sentiment and market confidence through the sustained decline of supply on exchanges. This has dropped from 1.9 million to 1.82 million over the past week – A sign of increased accumulation as investors transfer TON tokens into private wallets for self-custody