Cryptocurrency whales are currently “preparing for the next altcoin rally,” as they have set up limit buy orders for various altcoins beyond Bitcoin and Ethereum, to the point limit buy order volume for these coins has grown in an indicator that “strong buy walls are being set up.”
That’s according to the CEO of on-chain cryptocurrency analytics firm Ki Young Ju, who on the microblogging platform X (formerly known as Twitter) shared with his over 350,000 followers that these whales from setting up walls of limit sell orders to setting up walls of limit buy orders.
Whales are preparing for the next altcoin rally.Limit buy order volume for altcoins, excluding #Bitcoin and #Ethereum, is increasing, indicating that strong buy walls are being set up. pic.twitter.com/aOe3TxwVWE
— Ki Young Ju (@ki_young_ju) July 31, 2024
A heatmap compiled by CryptoQuant offers a granular view of buying and selling pressure across various altcoins. Solana, Cosmos, and Polygon emerge as top contenders with increasing buy interest, while Cardano and PancakeSwap show a more balanced picture.
Conversely, Dogecoin, Dash, and a few others appear to be facing selling pressure. As CryptoGlobe reported, several altcoins including the meme-inspired cryptocurrency Shiba Inu, Cardano’s native token ADA, and XRP could soon bounce back based on a key technical indicator suggesting these cryptocurrencies are currently undervalued.
That indicator, the Market Value to Realized Value (MVRV) Z-Score, was reportedly created by Awe & Wonder building on the work of Murad Mahmudov and David Puell, and measures the difference between the cryptocurrency’s total market capitalization and its realized market capitalization divided by the standard deviation of the market cap.
The MVRV Z-score indicator shows by how many standard deviations the market value differs from the realized value. It indicates whether investors are making a profit, with scores above 7 suggesting a high probability a bubble has formed, while scores below zero suggest the market is bleeding.
Assets with a low MVRV Z-Score, indicating potential undervaluation, include Uniswap, Shiba Inu, Cardano, XRP, Polygon, and Chainlink. While these assets experienced the “most pain”, Santiment argues they could be primed for a rebound if the market enters a sustained uptrend.
On the other hand, assets like Bitcoin, Ethereum, Dogecoin, and Toncoin are flagged as potentially riskier investments due to their high MVRV Z-Scores, suggesting overvaluation.
Featured image via Pixabay.
