Here Are the Altcoins in Buy Zone, Analytics Firm Reveals

On-chain analytics firm Santiment has revealed the altcoins that are currently in the historical buy zone according to a fair value model.

A large number of altcoins are currently near the opportunity zone.

In a new job On X, Santiment talked about what different assets in the cryptocurrency sector currently look like based on their Market Value to Realized Value (MVRV) RatiosThe MVRV ratio is an indicator that allows you to track the profit/loss status of addresses on a given network.

When the value of this indicator is greater than 1, it means that investors are currently making a net amount of profits. On the other hand, the value below this threshold implies the predominance of losses in the market.

Naturally, with the MVRV ratio being exactly equal to 1, this suggests that the unrealized loss on the network is exactly equal to the unrealized profit, so the average holder could be considered to be just breaking even.

Historically, corrections have become more likely when investor profits have exploded. Holders are more tempted to sell as their gains increase. Similarly, holders who find themselves underwater have facilitated bottom formations, as sellers become exhausted in such conditions.

Based on these facts, Santiment developed an opportunity and danger zone model that uses the divergence of the MVRV ratio over different time periods to better estimate whether an asset currently offers a buying or selling window.

Now here is the chart shared by the analytics firm that shows where the different altcoins are positioned according to this pattern:

It looks like the majority of altcoins are currently in the buy zone | Source: Santiment on X

Note that in this model, the zero mark plays the role of the neutral level 1 of the MVRV ratio. Moreover, the polarity is reversed here, with values ​​below zero implying profit dominance and those above it signifying loss.

The chart shows that most altcoins are currently in the positive zone, suggesting that their investors are underwater. Among them, Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH) stand out in particular as their MVRV divergence exceeds the 1 mark.

In this model, the region above 1 is called the “Opportunity Zonebecause assets have historically offered the most profitable opportunities when they were inside.

While most altcoins are currently at least slightly undervalued, a few, like Ethereum Name Service (ENS), MANTRA (OM), and Reserve Rights (RSR), are actually in or near the danger zone. The danger zone, which occurs below -1, is the equivalent of the opportunity zone, where coins become overvalued.

Ethereum Price

Ethereum, the largest among altcoins, has faced a dive by more than 4% in the last 24 hours, bringing its price below $3,300.

It seems that the price of the coin has dropped in the last few days | Source: ETHUSD on TradingView

Featured image from Shutterstock.com, Santiment.net, chart from TradingView.com

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