Bitcoin (BTC) and altcoins are continuing their downward trend. At this point, Bitcoin has fallen below $90,000 for the first time in seven months, a decline that has dragged the entire cryptocurrency market into negative territory for the week.
Analyzing the latest situation in BTC and altcoins, analysis platform Santiment said that data suggests it may be a good time to take advantage of the decline for some cryptocurrencies and consider buying.
According to Santiment, Bitcoin, Cardano (ADA), Chainlink (LINK), Ethereum (ETH), and XRP present buying opportunities.
At this point, Santiment said in his post that most major cryptocurrencies have become unprofitable for short-term investors.
According to Santiment, wallets that purchased Cardano, Chainlink, Ethereum, Bitcoin, and XRP in the last 30 days are experiencing a decline of over 10% in their portfolios, indicating a significant drop in average transaction returns.
Using the MVRV ratio in his analysis of the “buy signal on a dip,” Santiment stated that the relevant cryptocurrencies should be purchased when their returns are extremely negative.
“According to Santiment data;
Cardano – ADA: -19.7% (Overbought Zone)
Chainlink – LINK: -16.8% (Overbought Zone)
Ethereum- ETH: -15.4% (Overbought Zone)
Bitcoin- BTC: -11.5% (Good Buy Zone)
XRP: -10.2% (Good Buy Zone) is giving a buy signal.
Santiment recently noted that the MVRV ratio is a good metric for identifying buy zones. While support and resistance levels provide similar context, the MVRV offers a more accurate reference, according to Santiment.
“…In a zero-sum game, buy assets when the average trading returns of your peers are extremely negative. The lower the MVRV ratios, the greater the likelihood of a rapid recovery.”
*This is not investment advice.
