After the decline in Bitcoin, it is trading far from its peak from many altcoins. Although some altcoins have recovered a bit with the 10% reaction in Bitcoin, we see that many of them have a hard time recovering.
Data analytics company Santiment shared altcoins that it thinks are entering the opportunity zone with the recent volatility.
With increasing volatility in the cryptocurrency markets, some altcoins are overbought while others are underbought as traders follow the general trend. Historically, these less-bought altcoins are considered to have higher earnings opportunities.
Santiment explained this opportunity with the following words:
“We’re seeing levels of sunken profits as traders buy Fomo when crypto rises and sell FUD when it falls. Our model shows that traders in XRP, 1INCH, AAVE, CEL, GRT and UNI are in big trouble. This is an opportunity for us.”
📊 With Traders continuing to #FOMO in when #crypto surge, & then #FUD out when assets drop, we’re seeing heavily sunk profit levels for the majority of assets. Our model indicates $XRP, #1INCH, $AAVE, $CEL, $GRT, & $UNI are among those with major trader pain (& opportunities). pic.twitter.com/4Utzx4lwvN
— Santiment (@santimentfeed) January 27, 2022
This chart from Santiment calculates how far each asset is from its true value. According to this data, these altcoins, which are bought less than the others and where the investors who stay inside suffer the most, may offer higher profit opportunities while staying away from their fair values.
*Not Investment Advice.