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MVRV Shows $ETH is slightly undervalued, while $BTC, $XRPand Chainlink remain neutral.
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The crypto market is now experiencing an upward trend reversal despite recent downtrends.
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Buyers are showing renewed interest in crypto following Nvidia’s earnings report.
Based on the 30-day market value to realized value ratio (MVRV), Ethereum ($ETH) is slightly undervalued at -5.5%. Bitcoin($BTC), $XRP ($XRP) and chain link ($LINK) remain neutral at -1.4%, -0.1% and +3.3% respectively. On the other hand, Cardano (ADA) is slightly overvalued, with an MVRV ratio of +6.8%.
Source: Santiment
Bitcoin and the broader crypto market exhibit a bullish reversal trend
The past day saw an upward trend reversal in the broader cryptocurrency ecosystem, despite recent momentum and bearish sentiment.
Data shows that the Moving Average Convergence and Divergence (MACD) indicator has slightly exceeded its 9-day average, indicating a weak reversal of bullish momentum.
$BTC was up 7.78% over the past day to trade at $69,050 as $ETH gained 13.31% to regain its psychological level of $2,000. In the meantime, $XRP And $LINK gained +9.37% and 16.07% respectively. Uniquely, Cardano saw a striking rise of 20.07% to trade at $0.3115.
Source: CoinMarketCap
Events leading to the recent crypto rally
Technology company Nvidia recently reported record profits thanks to demand for artificial intelligence (AI). Due to crypto’s high correlation (98%) with the S&P 500, the news fueled a renewed risk appetite among stock and crypto investors.
Capital turnover of $BTC Altcoins have contributed to their recent rallies as investors seek higher returns on riskier assets. Bitcoin dominance is now 58-60%, while the Altcoin Season Index reads 34/100, indicating a mixed market for Bitcoin and Altcoins.
This week, Bitcoin ETFs saw net inflows of $257.7 million, ending a five-week outflow streak.
Short-term market outlook
At press time, the overall crypto market cap stood at $2.38 trillion, having gained 7.50% over the past 24 hours.
If the current rally continues, the crypto market could test the $2.59 billion level (50% Fibonacci). A fall below $2.35T (78.6% Fibonacci) would indicate a loss of momentum, validating a weak bullish theory.