Toncoin (CRYPTO:TON) has surged by 24% over the past month, bucking the trend of declining market activity seen across other cryptocurrencies.

However, indicators such as the Price-Daily Active Address (DAA) Divergence and Market Value to Realized Value (MVRV) ratio suggest that TON may be overvalued.

The Price-DAA Divergence currently stands at 281.15%, indicating a significant disparity between TON's price increase and the growth in its active user base.

This suggests speculative trading or potential overvaluation driving the price rally.

Moreover, the Chaikin Money Flow (CMF) has been trending downward since mid-June, signaling weakening buying pressure despite the price rise.

This divergence typically precedes a potential price correction, with projections pointing towards a possible drop to $7.70.