Santiment Outlines Potentially Bullish Altcoins as Digital Asset Markets Ticked Upwards on Friday

Santiment analyzes assets by their market value-to-realized-value (MVRV) Z-score, which aims to measure whether they are undervalued or overvalued.

Crypto analytics firm Santiment highlighted potentially bullish altcoins on Friday as digital asset markets showed an uptick.

Santiment analyzes assets using their market value-to- realized-value (MVRV) Z-score to gauge whether they are undervalued or overvalued.

A low MVRV Z-score indicates that an asset is undervalued, while a high MVRV Z-score suggests that it is overvalued.

Realized value, on the other hand, records the price of each asset the last time it moved and is used to gauge how many holders are in profit or at a loss.

According to Santiment, “If you believe markets are about to surge, history says that buying into assets that traders have experienced the most pain in have a greater probability of netting high returns for you.”

Highlighting high-pain assets with low MVRV Z-scores, the firm points to decentralized exchange (DEX) Uniswap (UNI), memecoin Shiba Inu (SHIB), blockchain scaling solution Polygon (MATIC), decentralized oracle network Chainlink (LINK), smart contract platform Cardano (ADA) and payments altcoin XRP.

High-gain assets that are currently riskier buys, according to Santiment, include layer-1 blockchain Toncoin (TON), Bitcoin (BTC), Ethereum (ETH) and top meme asset Dogecoin (DOGE).

While Santiment does not have MVRV data on Stellar (XLM), the analytics firm also notes that the XRP competitor’s social volume and sentiment have been on the negative side, which could be a “mildly bullish” sign for the asset.

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