simply put
The Santiment report highlights that 85% of altcoins are in the opportunity zone.
The MVRV ratio indicates potential buying or overvaluation risk.
Investors must choose wisely, considering the quality of the project.
Altcoin market developments continue to attract investor attention. The latest report from cryptocurrency analytics firm Santiment shows that more than 85% of altcoins are in what they call the "historical opportunity zone." This suggests that exciting times are ahead for altcoin investors.
Santiment Reports 85% of Altcoins Are in the “Opportunity Zone”
Santiment’s analysis based on the MVRV ratio model reveals the current state of the altcoin market. The MVRV ratio compares Bitcoin’s market value to its realized value, measuring the valuation of altcoins. But what does this mean?
First, it is crucial to understand the MVRV ratio. This ratio shows the difference between the market value of an altcoin and its realized value. The market value is the total value calculated based on the current price of the asset, while the realized value represents the most recent transfer price on the blockchain. Essentially, the MVRV ratio measures how much the current value of an altcoin has grown.
This analysis provides investors with an important way to assess the potential of altcoins. If an altcoin has a low MVRV ratio, it is often interpreted as a potential buying opportunity. However, a high MVRV ratio can indicate that the market is overvalued.
Altcoins: Opportunity or Danger for Investors?
In the investment world, the desire for profits comes with inevitable risks. While caution is warranted at peaks, losses can dominate at lows. At this juncture, Santiment’s altcoin “opportunity” and “danger” zone model comes into play.
The MVRV model evaluates the collective return of wallets based on the current market value of a particular asset. If the MVRV deviation is above 1, the model indicates a bullish opportunity, while a deviation below -1 indicates a bearish risk.
The chart shows that a large portion of the market is currently in the opportunity zone. According to analytics firm Santiment, more than 85% of the assets they track are in the historical opportunity zone when calculating MVRV.
Therefore, for investors who want to adopt this model, now may be the best time to buy altcoins. However, as with any investment, this requires careful analysis and risk management. Therefore, choosing good projects among altcoin selection is crucial for investors to avoid losses while hoping to make profits.
What are the altcoins worth investing in at the moment?
WIF
Memecoins are characterized by their speculative nature, which has attracted the attention of traders. Although not usually available on Coinbase, Dogwifhat has distinguished itself through its brand, development, and growing community support. WIF has quickly risen to become the third largest meme token in the world, surpassing the likes of Pepe and Floki, while also becoming the second most successful Solana meme token, achieving an astonishing 1425% growth within four months of its launch.
Dogwifhat enthusiasts raised $690,000 in just four days, unveiling the token’s mascot at the Sphere in Las Vegas. After Bitcoin’s halving, speculation has grown about whether WIF has the potential to break the $10 threshold. With its recent spot trading listing on the OKX exchange, expectations are growing that Dogwifhat will soon be listed on Coinbase.
ok
Last week, the price of ONDO increased by nearly 4%, a slight increase after a slight decline of about 2% in the past month. Over the past six months, ONDO's stock price has increased significantly by 2750.87%. Currently, its price fluctuates between $0.74 and $1.02. The price action shows that ONDO is running steadily, rather than rising or falling sharply.
Looking ahead to ONDO, there are both positive and negative changes. The current momentum could challenge the nearest resistance at $1.24. If the market favors ONDO, the price might even push towards the second resistance at $1.62. On the other hand, if investors withdraw funds, we might see the price fall back to the support at $0.47 or even $0.09. Keep an eye on the market trend of ONDO next.
TON
Toncoin (TON) is the native cryptocurrency of the TON Network, a fast and scalable layer-1 blockchain platform. TON originally started as the Telegram Open Network, spearheaded by the messaging app Telegram. However, after facing regulatory hurdles, Telegram distanced itself from the project. The TON community took over development, and TON now operates as an independent blockchain.
TON is currently trading at around $5.3, down slightly by about 9% in 24 hours, with a market value of approximately $8.046 billion. The impressive uptrend in the Toncoin price chart indicates strong demand, which is particularly evident at the support trend line. Despite the recent correction observed in the 4-hour chart, the altcoin is showing signs of resilience and is ready to continue its upward momentum and see a new rally.
In the past 16 hours alone, TON’s price has surged by nearly 10%, hinting at a potential rally that could surpass the psychological barrier of $10. With massive demand and momentum fueling the uptrend, there is speculation that a bull run could push Toncoin’s price to the $15 mark in the upcoming altcoin season.
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