As crypto markets show significant bounce action on a bullish Friday, it is essential to consider the position of various assets in terms of average trading returns.
According to the latest analysis by Santiment, investors should consider buying Uniswap ($UNI), Shiba Inu ($SHIB), Polygon ($MATIC), Chainlink ($LINK), Cardano ($ADA), and XRP ($XRP) for lower-risk investments.
As crypto markets show a significant bounce action on a bullish Friday, it is essential to consider the position of various assets in terms of average trading returns. Santiment’s analysis suggests that buying assets that have caused traders the most pain tends to yield higher returns during market surges.
This is aligned with the assumption that those assets that have delivered the worst returns according to the MVRV Z-Score are most likely to bounce back. So, the assets that brought a loss to traders are considered to be less risky and more promising in the future.
In total, there are 10 major coins analyzed by Santiment with different trader pain and gain. According to the analysis for those who seek lower risk, it is proposed to invest in those assets over which traders at the moment experience the maximum level of loss.
These assets include $UNI, $SHIB, $MATIC, $LINK, $ADA, and $XRP. These cryptocurrencies have the lowest or worst MVRV Z-Scores. It means that they are trading at prices that have led to massive losses for the average holder. Consequently, they are viewed as less risky and possibly due for a reversal in their performance.
On the same note, the analysis also shows areas wherein traders are already making money and these are viewed as risky by the new investors. Some of these assets are Toncoin, BTC, ETH, and DOGE.
These are the cryptocurrencies with high MVRV Z-Scores, meaning that they are at price levels, which have been profitable for traders. These assets may still generate good returns but the higher risk is also present because these assets are already overpriced and may pull back.
Lastly, the data provided by Santiment can present valuable insights for investors seeking to benefit from shifts in the market. By targeting those assets, where traders have been hurt the most, such as $UNI, $SHIB, $MATIC, $LINK, $ADA, and $XRP, investors can get even higher rewards with lower risk.
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