Are They Primed for Rebound?


The cryptocurrency market has been lackluster, with top assets trading sideways, showing minimal volatility and limited price movement.

Despite this period of stagnation, data suggests that most of these digital assets are undervalued and have more upside potential.

SHIB, DOGE, ADA Immensely Undervalued

According to Santiment’s latest findings, the 30-day Market Value to Realized Value (MVRV) ratio found several assets to be undervalued. A lower MVRV ratio indicates that traders are holding assets at a loss, which historically suggests an increased likelihood of a price rebound as oversold conditions may attract buying interest.

Santiment’s compiled data revealed that Bitcoin (BTC) has an MVRV of -4%, Ethereum (ETH) -4.3%, and XRP -3.5%, all suggesting mild bullish conditions.

Meanwhile, Dogecoin (DOGE) and Cardano (ADA) show more extreme undervaluation with MVRV of -16.7% and -12.6%, respectively, indicating very bullish prospects for a potential price recovery.

Toncoin (TON), which has seen an incredible run in the past few weeks, recorded an MVRV of -.6% and remains relatively neutral. This figure essentially signals a balanced market without strong indications of any imminent movement.

Interestingly, the popular meme coin Shiba Inu (SHIB) has the lowest MVRV among these large capped tokens with -19.1% also indicating strong bullish potential for a rebound.

Lack of Volatility

In line with the broader market trend, bitcoin’s price action has been muted over the past several weeks, notwithstanding a failed attempt to breach $70,000. Experts suggest that this “boring” movement signals the maturity of the world’s largest asset.

Moreover, bitcoin’s exchange supply is hovering near levels of December 2021 lows, which could point that a bullish reversal could very much be in the offing.

Previous analysis also unveiled that the bitcoin market cycle is yet to reach its peak euphoria stage and the present conditions resemble the early stages of previous bull markets, further reinforcing the notion that BTC is primed for more gains.

If that transpires, the cryptocurrency market as a whole could secure new highs before the end of this year.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!


Source link

You might also like

Comments are closed.