Altcoins Flashing Bullish Signal After Last Week’s Bloodbath, According to Analytics Firm Santiment
New data from market intelligence firm Santiment suggests that altcoins may recoup some of their losses from the crypto market’s sharp downturn last week.
According to the crypto analytics platform, altcoins are “overwhelmingly showing undervaluation” after last week’s bloodbath, leaving investors divided on how quickly the markets can recover.
Using the market value to realized value (MVRV) metric, which gauges whether a crypto asset is overvalued or undervalued, Santiment finds that the majority of altcoins are currently trading in the underbought zone.
“Market caps have fallen considerably over the past week, and traders are very polarized. Many believe a quick recovery is coming, while others see this as just the beginning of the dump. But undeniably, average crypto returns are in a mathematically historic opportunity zone.”
Santiment goes on to say that last week’s crash was one of the “sharpest drops” witnessed this year but notes that Bitcoin (BTC) whales have remained extremely active during the downturn.
“The dust has far from settled after crypto markets had one of its sharpest price drops of 2023. We are seeing a large amount of $1 million+ BTC transactions, indicating whales are very active on this dump. But the amount of large wallets is not falling.”
Bitcoin is trading for $26,130 at time of writing, a fractional increase during the last 24 hours but a 13% decrease from its seven-day high of $29,652.
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Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
