According to on-chain and market data provided by Santiment, XRP, AAVE and some other altcoins have entered the opportunity zone on the basis of MVRV Divergence.
đź“Š 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
Under-purchased assets
As the aforementioned indicator suggests, during the increased volatility in the crypto market, traders mostly follow the general trends in the market, while some assets are overbought and others underbought.
As the data shows, XRP remains one of the least purchased assets in the crypto market currently at 1-day MVRV Divergence. According to market data and the redistribution of funds, XRP is getting the lowest entry volume.
The 1inch token is also among the “underbought” leaders, with a notable value in the 1-day MVRV dispute.
While the majority of crypto-assets remain underbought, there are also assets like Fantom that appear to be heavily overbought in the six-month MVRV settlement in the market.
MVRV mismatch
Santiment’s graph calculates how far each asset is from its normal state. Each MVRV timeframe (such as 1 day, 6 months) is aggregated to measure the percentage distance that allows an asset to be understood whether it is in the overbought or oversold area.
MVRV, or Realized Value by Market Cap, is a ratio that allows crypto traders to understand whether the price of an asset is fair. As a standalone metric, MVRV is used to identify market highs and lows.
According to historical data, the indicator can be considered successful as it accurately predicts almost every high and low that occurs in the market.
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.