Altcoins are trying to recover after the sell-off caused by Silvergate over the weekend. Analytics firm Santiment reports that some are approaching the ideal buying zone in this crisis.
According to Santiment, there are a number of emerging opportunities for altcoin investments.
In its March 9 analysis, the on-chain analytics platform shared that altcoins are back in the buying zone with levels not seen since the beginning of January. He used the market value-to-realized value (MVRV) ratio to determine which ones fell the most. According to Santiment analysts:
If you’ve been waiting for the time to buy altcoins with blood on the streets, our MVRV model shows that the time has come.
Prices could of course fall further, but this has been the most cryptocurrencies in opportunity zones since early January.
Meanwhile, most altcoins are down more than 80% from ATH levels in 2021. However, Santiment’s MVRV findings identified one factor that could be good for long-term gains.
Santiment’s MVRV findings
MVRV is the ratio of a coin’s market capitalization to its realized capitalization. Comparing these two metrics can be used to get an idea of when prices are above or below ‘fair value’ to assess market profitability.
Values higher than about 3.5 indicate a greater degree of unrealized profit in the system. According to Glassnode, this makes it more likely for investors to scatter money to lock in earnings.
These altcoins approached the opportunity zone
According to Santiment, flashing low buy signals include 0x (ZRX), DYDX, Yearn Finance (YFI) and a handful of obscure altcoins. Looking at the prices of high-volume altcoins, it seems that a few have dropped drastically from their peaks. These include Ripple (XRP) (88%), Cardano (ADA) 89%, Dogecoin (DOGE) 90%, Solana (SOL) 93% and Polkadot (DOT) 90%.
These losses are greater than the overall crypto market, which is down 66% from its peak of just over $3 trillion in November 2021. By comparison, Bitcoin (BTC) and Ethereum (ETH) are down 68% from their all-time highs.
Cryptocurrency market pulls back
According to CoinGecko, crypto markets fell another 1.7% on the day as total capitalization fell to $1.04 trillion. Bitcoin traded at $21,773, losing 1.8% in 24 hours on Thursday morning. BTC has lost 10% over the past two weeks, currently at a three-week low.
Ethereum, on the other hand, dropped 1.3% to as low as $1,540. However, ETH’s two-week loss is only around 6%. Among altcoins, as expected, Polygon (MATIC), Solana (SOL), Cosmos (ATOM) and Lido (LDO) are bleeding, with heavy losses. cryptocoin.com As we have reported, some of them are facing sales pressure from Voyager.
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