On-chain analytics firm Santiment shared a remarkable detail in a recent X post. Centiment, altcoin He noted that holders are holding on to massive unrealized gains following weeks of explosive price movement for many cryptos.
centimeterIn his post on his X account, he stated that, except for a few stagnant altcoins, the “vast majority” of crypto projects provide significant profits to their owners.
Over a medium to long-term time frame, the average wallet has recorded “understandably high profits” from altcoins since the market turned green from mid-October 2023. However, the blockchain analysis platform also warned investors that its signals now indicate “overbought” levels.
Santiment also suggested that opening new positions in altcoins that are in the midst of a 4+ month rally is a high-risk move, based on the market capitalization to realized value (MVRV) metric.
This is definitely cryptocurrency It should not be interpreted as the unit being on the verge of a major correction. However, based on history, the MVRV metric suggests that buying or opening new positions while markets are in the midst of a 4+ month volatility is a higher than average risk.”
MVRV is the ratio obtained by dividing the total market value by the realized value of an asset. It is used when finding local peaks and valleys of an asset’s price movement.
On the other hand, Santiment also noted in early January that most altcoins depend on the stability of Bitcoin price to thrive. According to CoinGecko data, there was a 10.54% increase in the Ethereum (ETH) price, while Cardano (ADA) increased by 13.59% in the last seven days. Polygon (MATIC) also rose 13% over the same period.
