Today, Bitcoin rose again after the recent decline, reaching over $67,000. Santiment uses the MVRV-Z Score indicator when assessing the risk levels of cryptocurrencies, and this analysis reveals that some assets are overvalued or overvalued.
According to Santiment's data, leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Toncoin (TON) and Dogecoin (DOGE) are in the high-risk red zone according to their MVRV-Z Scores. This indicates that these assets are potentially overvalued and investors are likely to take profits, thus being subject to increased selling pressure.
The MVRV-Z Score is an important indicator that determines whether a cryptocurrency is overvalued by comparing its market value with its realized value. A high MVRV-Z Score indicates that investors are holding significant unrealized profits and are likely to sell their assets. A low score indicates that investors are holding unrealized losses and this could be a good buying opportunity.
According to the data, Toncoin (TON) was recorded as overvalued with an MVRV-Z Score of 5.09. Bitcoin (BTC) and Ethereum (ETH) follow with scores of 2.2 and 0.95, respectively. Dogecoin (DOGE) received 0.5 points. These figures indicate that these assets currently carry significant risks and may be subject to potential selling pressure.
Santiment also identified low-risk and undervalued cryptocurrencies. Among these assets, Uniswap (UNI) -2.29 MVRV-Z Score, Shiba Inu (SHIB) -1.63, Polygon (MATIC) -0.95, Chainlink (LINK) -0.61, Cardano (ADA) -0 .38 and XRP -0.2. These low scores indicate that these assets are likely undervalued and may have significant upside potential.
Market Effects and Investment Strategy
Santiment's MVRV-Z Score analysis provides important information for investors who are considering re-evaluating their portfolios. Those looking to consider lower-risk investment opportunities can consider assets that are considered undervalued, such as UNI, SHIB or MATIC. On the other hand, investors who hold high-risk assets such as BTC or ETH can take advantage of the opportunity to realize profits in current market conditions.
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