Time To Buy The Dip? These Are The Large-Cap Crypto Assets To Watch
July 06 2024 - 8:00AM
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After a turbulent week for the crypto market, the drop in prices
has left an opportunity for investors to enter new or double down
on their various positions. Fortunately, the blockchain
intelligence firm Santiment has identified some of the large-cap
cryptocurrencies to consider. These Cryptocurrencies Are In The
Opportunity Zone: Santiment Santiment revealed via a post on the X
platform has provided an interesting outlook on the crypto market,
stating that some digital assets are showing “buy the dip”
opportunities. This is based on their Market Value to Realized
Value (MVRV) ratios, which measure the average profit/loss of all
coins in circulation according to the current price. An MVRV ratio
value greater than 1 indicates that the investors of a coin are
holding a net amount of profits at the time. On the other hand,
when the value of the metric is less than 1, it means that most
investors of the particular crypto are carrying losses. Meanwhile,
an MVRV ratio of 1 means that the unrealized profit on a blockchain
is equal to the unrealized profit. Related Reading: Dogecoin Vs.
Shiba Inu Vs. PEPE: Comparing The Profitability Of The Top Meme
Coins Typically, corrections are believed to be more likely when
profits are high, as investors are more inclined to sell as their
gains grow. On the flip side, crypto holders are likely to refrain
from dumping assets when they are in the red, leading to the
formation of price bottoms. This forms the rationale behind
Santiment’s Opportunity and Danger Zone investment analysis. In its
recent post on X, Santiment mentioned that all notable large-cap
crypto assets (except Toncoin) are in the buying opportunity in the
short term. As shown in the chart below, the 30-day Market Value to
Realized Value ratio of these assets is deep in the negative,
implying there is less risk attached to investing in them at the
moment. According to Santiment’s data, Dogecoin (DOGE) — with an
MVRV ratio of –19.7% — has the best “buy the dip” potential. It is
followed by Uniswap’s governance token UNI, with a Market Value to
Realized Value ratio of –16.3%. To round up the top three is
Litecoin (LTC), which bears an MVRV ratio of –15%. Bitcoin, the
largest cryptocurrency by market cap, is amongst the mentioned
assets within the opportunity zone. Having undergone a steep
correction in the past week, the MVRV indicator is signaling that
the premier cryptocurrency might have bottomed out and could be
preparing for a move to the upside. Crypto Market On A Downturn The
crypto market suffered a massive decline over the past week, with
the total market capitalization falling by nearly 8%. This market
downturn seems even deeper on bigger timeframes. For instance, in
the last 30 days, the digital market has shed more than 21.5% of
its value. Related Reading: Shiba Inu Sees Sharp 100% Decline In
Whale Activity, Is This Good Or Bad For Price? Featured image from
Shutterstock, chart from TradingView
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