Analysts Forecast Price Rebound for Undervalued Bitcoin, Ethereum, XRP, Dogecoin, Toncoin, and Cardano
The cryptocurrency market displayed signs of stabilization in the early hours of Wednesday, with the total market capitalization of all assets increasing by 0.6% to $2.49 trillion, according to data from CoinGecko. Analysts at Santiment, an on-chain intelligence tracker, have identified potential for a short-term rebound in the top 10 cryptocurrencies.
Santiment analysts have highlighted that Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Dogecoin (DOGE), Toncoin (TON), and Cardano (ADA) are currently undervalued based on the Market Value to Realized Value (MVRV) metric over the past 30 days. The MVRV metric is utilized to analyze overall investor behaviors as prices fluctuate relative to their cost basis. A negative MVRV on a specific timeframe suggests that the asset is undervalued on average.
The 30-day MVRV ratios for these assets are as follows:
– Bitcoin: -4.0% (mildly bullish)
– Ethereum: -4.3% (mildly bullish)
– XRP: -3.5% (mildly bullish)
– Dogecoin: -16.7% (very bullish)
– Toncoin: -0.6% (neutral)
– Cardano: -12.6% (very bullish)
According to Santiment analysts, lower 30-day MVRV values indicate undervalued assets and the potential for a short-term price increase. Bitcoin is currently trading above a crucial support level at $65,000, while Ethereum remains above $3,500, based on data from CoinGecko. Other cryptocurrencies in the top 10 have shown signs of recovery in the past hour and 24 hours, although returns have been predominantly negative over the seven-day period.
The Santiment chart on average trader returns and undervalued assets further supports the notion that these cryptocurrencies may be poised for a rally. The decline in active wallet addresses for assets like DOGE and TON within the same timeframe also suggests potential undervaluation.
Overall, the crypto market appears to be in a phase of consolidation, with analysts foreseeing a short-term bounce in prices for the undervalued assets in the top 10. As investors continue to monitor market trends and indicators like the MVRV ratio, the potential for a market upturn remains on the horizon.
