Sentiment: Opportunity to invest in altcoins as the market reaches its lowest level
While the publication of the news of Silvergate Bank’s bankruptcy yesterday caused the price of altcoins to drop again, which had lost about 80% of their value during the previous bearish market; Sentiment Company points to the current investment opportunities of the market by citing such an argument.
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According to BinCrypto, such a sentiment analysis platform believes that the time has come to invest in altcoins.
The company noted in a tweet on March 9 (March 18) that altcoins are back in the buying zone; to a level that we have not seen since the beginning of January.
In its analysis, using the market value to realized value ratio (MVRV) index, Sentiment has determined which of the altcoins had the most price reduction.
If you’ve been waiting for the time to buy altcoins in a bear market, our market-to-realized value model shows that now is the time.
The bearish market of altcoins
The price of most altcoins has decreased by more than 80% compared to their highest level in 2021. However, a review of MVRV Sentiment Index has identified a handful of these cryptocurrencies that could (probably) be suitable for long-term investment.
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This index calculates the ratio of the asset’s market value to its realized value. By comparing these two values, an assessment of market profitability can be obtained, when asset prices are trading above or below their fair value.
Values greater than about 3.5 indicate larger unrealized profits in the market. According to Glassnode, these conditions will increase the possibility of investors selling coins in order to save profits.
According to Sentiment, the tokens of ZeroX (0x), DYDX (DYDX), Yren Finance (YFI) and a handful of unknown altcoins are trading below their true value.
Examining the prices of major altcoins in the market also shows that their value has decreased significantly compared to their peak price. including an 89% drop in the price of Ripple and Ada Cardano, a 90% drop in the price of Dogecoin and Polkadata, and a 93% drop in the price of Solana.
Of course, these amounts are more than the decline in the value of the entire digital currency market, which is down about 66% from its peak of more than $3 trillion in November 2021 (Aban 1400).
In comparison, Bitcoin and Ethereum are down about 68% from their all-time highs.
Digital currency market retreat
According to data from CoinGeek, the market value of digital currencies decreased by 1.3% in the last 24 hours to about 1.039 trillion dollars.
The price of Bitcoin is also trading at the limit of $21,650 with a 2% decrease compared to the previous day. The value of this digital currency has reached its lowest level in the last 3 weeks and has decreased by 8.3% in the last 2 weeks.
The price of ethereum also decreased by 1.6% during this period and reached the range of $1,530. While it has witnessed a 7.8% drop in its value over the past week.
As expected, other major altcoins in the market such as Solana, Paligan, Lido and Cosmos also saw heavy losses, especially with the announcement of the bankruptcy of Silvergate Digital Currency Bank.
