Altcoins
Here Are The Altcoins In The Buy Zone, Reveals The Analytics Firm
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 close to the opportunity zone
In a new send On X, Santiment talked about how the various assets in the cryptocurrency sector currently look based on their Market Value to Realized Value Ratio (MVRV)The MVRV ratio is an indicator that tracks the profit/loss status of addresses on a given network.
When the value of this indicator is greater than 1, it means that investors are taking a net amount of profits at this time. On the other hand, the metric below this threshold implies the predominance of losses in the market.
Of course, the MVRV ratio being exactly equal to 1 suggests that the unrealized loss on the network is exactly equal to the unrealized profit, so the average holder could be considered to simply break even.
Historically, corrections have become more likely when investors’ profits have ballooned. Holders are more tempted to sell the larger their gains. Likewise, when holders have gone underwater, it has facilitated the formation of the bottom, as sellers have become exhausted in such conditions.
Based on these facts, Santiment has developed an opportunity and danger zone model that uses the divergence of the MVRV ratio over different time frames to better estimate whether an asset is currently offering a buy or sell window.
Here is the chart shared by the analytics firm showing where the different altcoins stand according to this model:
Note that in this model, the zero sign takes on the role of the neutral level 1 of the MVRV ratio. Furthermore, the polarity is reversed here, with values below zero implying profit dominance and those above indicating loss.
The chart shows that most altcoins are in the positive region right now, which suggests that their investors are underwater. Among them, Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH) stand out in particular as their MVRV divergence crosses the 1 mark.
According to this model, the region above 1 is called “Opportunity Zone,” as historically activities have offered the most profitable opportunities within them.
While most altcoins are at least slightly undervalued at the moment, some, such as Ethereum Name Service (ENS), MANTRA (OM), and Reserve Rights (RSR), are in or near the Danger Zone. The Danger Zone, which occurs below -1, is the counterpart to the Opportunity Zone, where coins become overvalued.
Ethereum Price
Ethereum, the largest of the altcoins, has faced a dip by more than 4% in the last 24 hours, bringing its price below the $3,300 level.
Featured image from Shutterstock.com, Santiment.net, chart from TradingView.com