Dogecoin & Cardano Currently Have Low 30-Day MVRV Ratios: Santiment
- PHPzOriginal
- 2024-06-20 08:26:091181browse
The on-chain analytics firm Santiment has revealed that Dogecoin and Cardano are two assets that look “very bullish” according to this metric.
Cryptocurrency analytics firm Santiment has revealed that Dogecoin and Cardano are two assets that look “very bullish” according to a key on-chain metric.
The metric in question is the 30-day Market Value to Realized Value (MVRV) Ratio, which keeps track of the ratio between the market cap and realized cap for any given coin.
The realized cap is a method of calculating the valuation of a cryptocurrency, but the twist here is that this model doesn’t take the value of all tokens in circulation the same as the spot price.
Rather, this model assumes that the “real” value of any coin is the same as the price at which it was last transferred on the blockchain.
The 30-day MVRV Ratio only includes the data for the investors who bought their coins within the past month. Thus, its value reflects the profit-loss balance of these new buyers.
From the graph, it’s visible that the indicator is at negative levels for all of these assets right now, implying that the 30-day investors would be at a loss. This may not actually be bad, though, as Santiment notes, “the lower a cryptocurrency’s 30-day MVRV is, the higher the likelihood we see a short-term bounce.”
At present, Bitcoin, Ethereum, and XRP are seeing small negative values, suggesting that these assets may be slightly undervalued. The metric stands at just -0.6% for Toncoin, though, implying that TON is more or less neutral currently.
Dogecoin and Cardano, on the other hand, stand out with their 30-day MVRV Ratios of -16.7% and -12.6%, respectively. These values are deep enough that Santiment has labelled these coins as “very bullish.”
It now remains to be seen how DOGE and ADA develop in the coming days, given this potential positive signal in the MVRV Ratio.
News source：https://www.kdj.com/cryptocurrencies-news/articles/dogecoin-cardano-low-day-mvrv-ratios-santiment.html
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