These Are The Altcoins In Buy Zone, Analytics Firm Reveals
July 03 2024 - 5:30PM
NEWSBTC
The on-chain analytics firm Santiment has revealed the altcoins
that are currently in the historical buy zone according to a fair
value model. A Large Amount Of Altcoins Are Currently Near The
Opportunity Zone In a new post on X, Santiment talked about what
the various assets in the cryptocurrency sector are looking like
right now based on their Market Value to Realized Value (MVRV)
ratios. The MVRV ratio is an indicator that keeps track of the
profit/loss status of the addresses on any given network. When the
value of this indicator is greater than 1, it means the investors
are carrying a net amount of profits right now. On the other hand,
the metric under this threshold implies the dominance of losses in
the market. Related Reading: Crypto Analyst Says Next Bitcoin
Target Is $78,700 If BTC Breaks This Resistance Naturally, the MVRV
ratio being exactly equal to 1 suggests the unrealized loss on the
network is exactly equal to the unrealized profit, so the average
holder could be considered just breaking even. Historically,
corrections have become more probable when investor profits have
ballooned up. Holders become more tempted to sell the larger their
gains grow. Similarly, holders getting underwater has facilitated
bottom formations, as sellers become exhausted during such
conditions. Based on these facts, Santiment has developed an
Opportunity and Danger Zone Model that uses the MVRV ratio’s
divergence on different timeframes to estimate better whether an
asset is currently providing a buying or selling window. Now, here
is the chart shared by the analytics firm that shows where the
different altcoins stand according to this model: Note that in this
model, the zero mark takes the role of the neutral 1 level from the
MVRV ratio. Also, the polarity is flipped here, with values under
zero implying profit dominance and those above signifying loss. The
graph shows that most of the altcoins are in the positive region
right now, suggesting that their investors are underwater. Among
these, Basic Attention Token (BAT), Chromia (CHR), and Highstreet
(HIGH) particularly stand out as their MVRV divergence exceeds the
1 mark. Related Reading: PEPE Bullish Signal: Whale Withdraws $14.7
Million Stack From Binance Under this model, the region above 1 is
called the “Opportunity Zone,” as assets have historically offered
the most profitable opportunities while inside it. While most
altcoins are at least slightly undervalued currently, a few, like
Ethereum Name Service (ENS), MANTRA (OM), and Reserve Rights (RSR),
are in or near the Danger Zone instead. The Danger Zone, which
occurs under -1, is the counterpart to the Opportunity Zone, where
coins become overvalued. Ethereum Price Ethereum, the largest among
the altcoins, has faced a plunge of more than 4% in the last 24
hours, which has taken its price under the $3,300 level. Featured
image from Shutterstock.com, Santiment.net, chart from
TradingView.com
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024