As an experienced market analyst, I have closely monitored the recent downturn in the cryptocurrency market, particularly the significant drops in Bitcoin, Ethereum, XRP, Dogecoin, and Cardano. However, data from on-chain analytics firm Santiment suggests a short-term bounce is due for some of these assets based on their 30-day Market Value to Realized Value (MVRV) ratios.
The current slump in the cryptocurrency market has caused substantial declines in the values of well-known digital currencies such as Bitcoin, Ethereum, XRP, Dogecoin, and Cardano. Nevertheless, an unfamiliar indicator points towards a potential brief recovery.
According to information provided by on-chain analytics firm Santiment, a lower 30-day Market Value to Realized Value (MVRV) ratio in cryptocurrencies is indicative of a higher probability for a brief price increase.
One way to rephrase this in clear and natural language: The MVRV ratio for an asset, calculated over the past 30 days, measures its current price against the average purchase price during that period. A lower than usual MVRV might signify that the asset is underpriced, possibly hinting at a price increase in the upcoming weeks.
Based on Santiment’s data analysis, Bitcoin and Ethereum have a 30-day MVRV score of -4.0% and -4.3% respectively, which is mildly bullish. In contrast, XRP has a more encouraging -3.5%, while Cardano has a more significant -12.6%, suggesting a greater possibility for a rebound in the near future.
A cryptocurrency with a relatively low 30-day MVRV ratio has a greater chance of experiencing a brief price increase.
— Santiment (@santimentfeed) June 19, 2024
Over the past week, Bitcoin experienced a notable decrease in price, dropping by approximately 6.3%. In contrast, Ethereum saw a smaller decline of around 2.7%, while XRP managed to gain a modest 0.5% increase. Unfortunately, Cardano suffered significant losses, with over 11.7% of its value disappearing during this period.
Market analysts share Santiment’s bullish perspective, specifically towards XRP and Cardano. An anonymous analyst, known as Cryptobilbuwoo, presented a weekly chart analysis indicating a connection between XRP’s price fluctuations and the dominance of altcoins (ALT.D).
According to his technical assessment, every time ALT.D hits a resistance level and starts trending upwards again, XRP usually follows suit, leading to market-wide growth for altcoins. Based on this analysis, there’s a strong possibility that XRP could reach $2.71 in value, which would indicate an upcoming technical recovery.
At present, some analysts believe that the price of Cardano may bounce back shortly, making it a favorable moment for investors to employ dollar-cost averaging (DCA) and buy the cryptocurrency at its current reduced price.
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2024-06-19 20:03