Altcoin markets are bleeding, but there could be some bargains to be had
Altcoin markets are being hit particularly hard again, but analytics firm Santiment sees a silver lining.
According to on-chain analytics platform Santiment, there are a number of new opportunities for altcoin investing.
On March 9, the company announced that altcoins are back in the buy zone at levels not seen since early January.
It used the Market Value to Realized Value (MVRV) ratio to determine which have fallen the most.
“If you’ve been waiting for the time to buy altcoins, when blood is spilling in the streets, our MVRV model indicates that time has come.”
🤠📊 When you’ve been waiting for the time to buy #altcoins When blood spills on the streets, our MVRV model will indicate that time has come. Of course, prices can still fall further, but this is the most #crypto Assets have been in opportunity zones since early January. pic.twitter.com/LoM4ooiGUU
— Santiment (@santimentfeed) March 9, 2023
Altcoin markets in the red
The majority of altcoins remain more than 80% below their 2021 all-time highs. However, Santiment’s MVRV results have identified a handful that could be good for longer-term gains.
MVRV is the ratio of an asset’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 gauge market profitability.
Higher values above about 3.5 indicate a higher level of unrealized gain in the system. According to Glassnode, this increases the likelihood that investors will distribute coins in order to make a profit.
According to Santiment, these blinking underbought signals include 0x, DYDX, Yearn Finance (YFI), and a handful of obscure altcoins.
A look at high-cap altcoin prices reveals some that are well off their highs. These include Ripple (XRP) at 88%, Cardano (ADA) at 89%, Dogecoin (DOGE) at 90%, Solana (SOL) at 93%, and Polkadot (DOT) at 90%.
Those losses are bigger than the overall crypto market, which is down 66% from its peak of just over $3 trillion in November 2021.
In comparison, Bitcoin (BTC) and Ethereum (ETH) are both down 68% from their all-time highs.
Crypto Markets Retreat
According to CoinGecko, crypto markets are down another 1.7% on the day as total capitalization has dropped to $1.04 trillion.
Bitcoin is down 1.8% on the day, trading at $21,773 during Thursday morning’s Asian trading session. BTC is now at a three-week low after losing 10% over the past two weeks.
BTC/USD 1 week – BeInCrypto
Ethereum is down 1.3% to $1,541 at the time of writing. However, ETH’s fortnightly loss is only about 6%.
Altcoins are bleeding out as expected, with heavy losses for Polygon (MATIC), Solana (SOL), Cosmos (ATOM) and Lido (LDO).
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