Crypto intelligence firm Santiment is analyzing the sentiment of market participants in large-cap altcoins to determine whether the markets are ready to take a leap.
In a recent tweet they shared, Santiment; Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Left (LEFT) and Binance Coin (BNB) claims that traders and investors of the most popular digital assets, such as
Have we hit rock bottom enough that the “streets are bloodbathed”? According to crowd sentiment, there is a lot of fear, uncertainty and doubt (FUD) and bearish bias for BTC, ETH, BNB, SOL and ADA. As this chart shows, negativity is most commonly associated with jumps.”
Santiment says it has studied the leading smart contract platform ETH closely and used the MVRV (market cap to realized value) metric, which divides an asset’s market value by its realized value, to evaluate ETH. The MVRV metric is used by analysts to identify market highs and lows.
According to the crypto insight firm, the MVRV metric is at a six-month low, which means lower risk for new entrants to the market.
“Ethereum bottoms out at $3,118… is it time to panic? According to the average MVRV of ETH, this is the biggest “pain” traders have felt since July and that’s the price [Temmuz] It has increased 118 percent from the pain point. Also, the ratio of active addresses to price seems to be quite positive/rising.”
At the time of writing, Ethereum is trading at $3,036, about 38 percent below its all-time high.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.