Altcoins
Most Altcoins in ‘Historic Position’ to Recover as Traders Take Big Losses Over Past Month: Santiment
Analytics firm Santiment says the majority of altcoins are expected to trigger rallies after a month-long crypto correction.
Santiment claims that the current market pullback has caused many altcoin traders to drain their stacks and suffer heavy losses.
“According to our model, the medium-term gains and losses of average portfolios indicate heavy realized losses on most altcoins. Over 85% of the assets we track are in a historic opportunity zone when calculating market value to realized value (MVRV) of collective portfolio returns on one-month, three-month cycles and six months.
MVRV is an on-chain indicator used to assess whether a crypto asset is undervalued or overvalued.
While MVRV is in prime opportunity zones across multiple time frames for most altcoins, the analytics firm says alts could be in a “historic position” to witness rallies.
“There may be justification for buying as fear creeps more and more into the crowd after all these market cap drops.”
Source: Santiment/X
Amid preparation for a potential rally, Santiment notes that traders are starting to ignore volatile altcoins like Dogecoin (DOGE) in favor of crypto assets which have held up well in difficult conditions.
“The total number of non-empty Bitcoin wallets is growing rapidly despite unstable prices. Altcoin wallets for assets like Dogecoin have stabilized after huge increases earlier this year. Cardano is one of the few networks to see active wallets fall.
Source: Santiment/X
At the time of writing, DOGE is trading at $0.149, down over 34% from its 2024 high of $0.228. Meanwhile, Bitcoin is worth $64,000, down 13% from its 2024 high of $73,650.
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