Bitcoin($BTC) and altcoins are experiencing a strong downward trend in recent weeks. As the market faces a significant decline, on-chain analytics platform Santiment noted that some cryptocurrencies have reached historic buying zones.
According to Santiment, many major cryptocurrencies fell into historical buy zones according to the 30-day MVRV metric during the recent market downturn.
Santiment also added that early signs of a recovery are starting to appear in many cryptocurrencies, which could signal a potential short-term uptrend.
Santiment noted that, according to its 30-day MVRV metric, five major assets simultaneously reached negative MVRV values. According to Santiment’s assessment, all of these assets fall within what it defines as a fair purchase zone.
- Bitcoin($BTC) -10% (Fair purchasing zone)
- Cardano (ADA) is around -18% (strong buy zone)
- Ethereum (ETH) -12% (fair buy zone)
- Chainlink (LINK) -9% (fair buy zone)
- XRP -8% (fair buy zone)
“These negative MVRV ratios mean that almost all retail buyers of crypto assets are currently at a loss over the past month.”
Santiment noted that the chart he added shows that most of these assets have already started to recover after entering the negative MVRV zone, illustrating a trend that has repeated over several market cycles. However, he cautions against overestimating this signal, warning that “no indicator guarantees instant gains.”
*This does not constitute investment advice.