In the current scenario of the falling cryptocurrency market with Bitcoin testing the $61,000 support, a recent analysis from Santiment brings to light promising prospects for investors.

The company, known for its in-depth on-chain investigations, looked at the behavior of altcoins through the lens of MVRV – an indicator that measures the relationship between the market value and the realized value of these digital assets. This metric, by comparing investors’ initial investment with current market value, offers valuable insights into potential price movements.

According to Santiment, histories of high profits among investors generally herald the arrival of market tops, given the increased tendency to take profits. However, the analysis points out that we are in a peculiar moment where the recent market correction, led by the drop in Bitcoin, has set the stage for buying opportunities in several altcoins. This is especially true for those assets that have entered the so-called negative return territory, where selling pressure tends to decrease.

Santiment’s methodology introduces an “Opportunity and Danger Zone Model” using the MVRV divergence of various altcoins to identify windows of buying or selling opportunity. The chart provided by the company illustrates this model in action, highlighting altcoins that, despite recent turbulence, show recovery potential.

It is important to note that, although some altcoins show negative medium-term returns, they are not necessarily in the direct purchase zone. The analysis suggests that, in the crypto universe, where the game is zero-sum, those projects that show minimal returns compared to the rest of the market tend to offer better chances of recovery.

Among the altcoins highlighted by Santiment as promising recovery candidates are Lido DAO (LDO), Synthetix (SNX), Storj (STORJ) and OMG Network (OMG). These assets, according to the analysis, are in the medium-term opportunity zone, which could signal an interesting time for investors to consider the #buythedip strategy.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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