Monitoring the Market Value to Realized Value (MVRV) ratio can be a valuable tool for investors, helping them determine if current market conditions align with historical currency trends. MVRV ratio of 3.7 indicates historical highs, whereas a ratio of 1 or below suggests lows.
The MVRV is currently around 2.1, attempting to break a downtrend. If it can break this downtrend, we could potentially see sharp price increases after a retest, similar to previous cycles.
Written by tugbachain