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Is the cryptocurrency crash over? Data suggests an imminent rebound for Bitcoin, XRP and Cardano
The recent downturn in the cryptocurrency market has seen the prices of major cryptocurrencies including Bitcoin, Ethereum, XRP, Dogecoin and Cardano decline significantly. One little-known metric, however, suggests a near-term rebound is expected.
That’s according to data shared by on-chain analytics firm Santiment, which finds that the lower a cryptocurrency’s 30-day market value to realized value (MVRV) ratio, a metric used to gauge market sentiment and predict future price movements, the “higher the value We are likely to see a short-term rebound”.
The 30-day MVRV ratio compares the current price of an asset to the average price at which it was acquired over the past month. A lower MVRV suggests that the asset is undervalued, potentially indicating a price recovery in the near future.
According to data from Santiment, Bitcoin and Ethereum currently stand at -4.0% and -4.3% respectively on the 30-day MVRV scale, suggesting a slightly bullish outlook. XRP, however, holds a more promising -3.5%, while Cardano boasts a significantly lower -12.6%, indicating stronger rebound potential.
🐂 The lower a cryptocurrency’s 30-day MVRV, the higher the likelihood of seeing a short-term bounce:
Bitcoin: -4.0% (slight bullish)
Ethereum: -4.3% (slight bullish)
XRP: -3.5% (slight bullish)
Dogecoin: -16.7% (Very Bullish)
Toncoin: -0.6% (neutral)
Cardano: -12.6% (Very Bullish) pic.twitter.com/zHGg4t3qo1— Santiment (@santimentfeed) June 19, 2024
In particular, while the price of Bitcoin has fallen by 6.3% in the last seven days, Ethereum has fallen by 2.7% while XRP has risen by 0.5% and Cardano has lost as much as 11.7% of its value in the same period.
Market analysts also echo Santiment’s optimistic outlook, particularly for XRP and Cardano. A pseudonymous analyst from Cryptobilbuwoo has shared a weekly chart-based analysis that suggests a correlation between XRP price movements and altcoin (ALT.D) dominance.
Read also: AI Prediction: XRP ($XRP) vs. Cardano ($ADA) – which is probably the best buy for the rest of 2024
His analysis suggests that every time ALT.D retries an uptrend line, XRP tends to rise, positively impacting the entire altcoin market. Based on its technical analysis, XRP could potentially rise to $2.71, signifying an imminent technical rebound.
Meanwhile, analysts suggest that Cardano’s price may soon rebound and its current price level is “an incredible opportunity” for dollar-cost averaging (DCA) in the cryptocurrency as its prices trend lower.
Featured image via Unsplash.