Crypto market falls to local lows: Opportunity to buy altcoins?

Crypto market falls to local lows: Opportunity to buy altcoins?

The altcoins market is getting particularly hard hit again, but analytics firm Santiment sees a silver lining.

There are a number of emerging opportunities for investments in altcoins, according to on-chain analytics platform Santiment.

On March 9, the firm stated that altcoins are back in the buy zone at levels not seen since early January. It used the Market-Value-to-Realized-Value (MVRV) indicator to determine which ones fell the most:

The altcoin market is in the red.

Most altcoins remain more than 80% below their 2021 all-time highs. However, Santiment’s MVRV findings have identified a few that could be good for long-term gains.

MVRV is a ratio of an asset’s market capitalization to its realized capitalization. Comparing these two metrics can be used to get a sense of when prices are above or below “fair value” to assess market returns.

Values above around 3.5 indicate a higher degree of unrealized profit in the system. This increases the likelihood that investors will distribute coins to lock in profits, according to Glassnode.

According to Santiment, those intermittent underbought signals include 0x, DYDX, Yearn Finance (YFI) and a handful of small-cap altcoins.

Looking at the prices of large-cap altcoins shows several that are well below their peaks. These include Ripple (XRP) at 88%, Cardano (ADA) at 89%, Dogecoin (DOGE) at 90%, Solana (SOL) at 93% and Polkadot (DOT) at 90%.

These losses are greater than the overall crypto market, which has fallen 66% from its peak of just over $3 billion in November 2021.

By comparison, Bitcoin (BTC) and Ethereum (ETH) are down 68% from their all-time highs.

Crypto market downturn

The crypto market has fallen a further 1.7% on the day as total capitalization plunges to $1.04 trillion, according to CoinGecko.

Bitcoin lost 1.8% on the day to trade at $21,773 during Thursday morning’s Asian trading session. BTC now sits at a three-week low, having lost 10% in the past two weeks.

Ethereum is down 1.3% to $1,541 at the time of writing. However, ETH’s biweekly loss is only about 6%.

The altcoins are bleeding off as expected, with big losses for Polygon (MATIC), Solana (SOL), Cosmos (ATOM) and Lido (LDO).


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