Cryptocurrency analysis company Santiment has found that with the rebound of the digital asset market on Friday, altcoins may enter a bullish trajectory.
Santiment uses its Market Value to Realized Value (MVRV) Z-score to value assets, aiming to determine whether assets are undervalued or overvalued.
Assets with a low MVRV Z-score are considered undervalued, while assets with a high MVRV Z-score are considered overvalued.
Realized value records the price of each asset at its last change, aiming to assess how many holders are in a profitable or loss-making state.
The company’s analysts stated:
“If you think the market is rising, history shows that assets that have experienced the most [losses] by traders are more likely to generate high returns.”
Read more:
Michael Saylor believes each Bitcoin token could rise to $490,000
Santiment emphasizes that assets with low MVRV Z-scores include decentralized exchanges (DEX) Uniswap (UNI), Shiba Inu (SHIB), blockchain scaling solution Polygon (MATIC), Chainlink decentralized network (LINK), smart contract platform Cardano (ADA), and XRP.
On the other hand, high-risk, high-profit assets currently being purchased include Toncoin (TON), Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
Although Santiment does not have MVRV data for Stellar (XLM), the company points out that the quantity and sentiment on social media are unfavorable for the token, making it a “lightly whipped” asset.
The cryptocurrency market showed a significant rebound on Friday in the bull market, remember the average trading return of various assets.
If you believe the market is about to emerge, history shows that assets that have experienced the most painful for traders…
pic.twitter.com/ReNHwEWb84
-Santiment (@santimentfeed)
July 26, 2024
