Markets
Time to Buy the Dip? Here Are the Large-Cap Cryptoassets to Watch
After a Busy week for the cryptocurrency marketThe price drop has given investors an opportunity to enter new positions or double down on their investments. Fortunately, blockchain intelligence firm Santiment has identified some of the large-cap cryptocurrencies to consider.
These cryptocurrencies are in the opportunity zone: Santiment
Santiment revealed via a post Platform X has provided an interesting perspective on the cryptocurrency market, claiming that some digital assets present dip buying opportunities. This is based on their Market Value to Realized Value (MVRV) ratios, which measure the average profit/loss of all coins in circulation based on the current price.
A MVRV Report A value greater than 1 indicates that investors in a cryptocurrency are holding a net amount of profits at that time. On the other hand, when the value of the metric is less than 1, it means that most investors in the cryptocurrency in question are incurring losses. At the same time, an MVRV ratio of 1 means that the unrealized profit on a blockchain is equal to the unrealized profit.
Typically, corrections are more likely when earnings are high, as investors are more likely to sell when their earnings are rising. Conversely, cryptocurrency holders are likely to refrain from selling their assets when they are in the red, leading to the formation of price floors. This is the rationale behind Santiment’s Opportunity and Danger Zone investment analysis.
In his recent article on X, Santiment mentioned that all notable large-cap crypto assets (except Toncoin) present a short-term buying opportunity. As the chart below shows, the 30-day market value to realized value ratio of these assets is deeply negative, implying that there is less risk in investing in these assets at the moment.
According to data from Santiment, Dogecoin (DOGE) — with an MVRV ratio of -19.7% — has the best “buy the dip” Potential. It is followed by Uniswap’s governance token UNI, with a market value to realized value ratio of -16.3%. Rounding out the top three is Litecoin (LTC), which has an MVRV ratio of -15%.
Bitcoin, the largest cryptocurrency by market capitalization, is among the assets mentioned in the opportunity zone. After undergoing a abrupt correction Over the past week, the MVRV indicator signals that the leading cryptocurrency may have bottomed out and could be preparing for an upward move.
Cryptocurrency market down
THE cryptocurrency market The cryptocurrency market has seen a massive drop over the past week, with the total market cap dropping by nearly 8%. This market downturn appears even deeper over longer time frames. For example, over the past 30 days, the digital market has lost over 21.5% of its value.
Featured image from Shutterstock, chart from TradingView