Cryptocurrency: Top 5 Coins To Buy During The Dip
After the largest cryptocurrency, Bitcoin, experienced a decline to $60,800, reaching a 2-week low on Tuesday, the Santiment MVRV Opportunity & Danger Zone Model suggests that certain altcoins have decreased sufficiently, potentially offering an opportunity for mid-term trading returns.
The blockchain analytics platform, Santiment, developed this model. It suggests that an asset enters an “opportunity zone” when its 30-day, 90-day, and 365-day average wallet returns combine to be in negative territory.
Also read: Shiba Inu: Can SHIB Reclaim $0.00004 By March End?
— Santiment (@santimentfeed) March 20, 2024
Following #Bitcoin's drop to a 2-week low of $61.7K Tuesday, the @santimentfeed MVRV Opportunity & Danger Zone Model indicates that several #altcoins have finally dropped enough for mid-term trading returns to be in an #opportunity zone. This zone gets breached when an asset's… pic.twitter.com/LAJxDtc1kp
In the crypto industry, projects with minimal returns compared to the rest of the sector have a higher probability of a more efficient rebound for investors who are willing to “buy the dip” on projects where traders are experiencing the most pain.
Altcoins in the Opportunity Zone
According to the Santiment model, some of the best candidates currently in this opportunity zone include:
- Bounce Token (AUCTION)
- Lido DAO (LDO)
- OMG Network (OMG)
- Storj (STORJ)
- Synthetix (SNX)
Also read: Top Cryptocurrency Analyst Shares 6 Altcoins Set To 6X In 2024
These altcoins have seen their average wallet returns over the past 30, 90, and 365 days collectively enter negative territory. Also, this suggests that they may be poised for a more efficient rebound compared to other projects in the cryptocurrency sector.
Santiment developed the MVRV (Market Value to Realized Value) Opportunity and Danger Zone Model as a tool to assist investors in identifying potential entry and exit points for various cryptocurrencies.
The model takes into account the average returns of wallets holding a particular asset over different time periods. Namely, 30 days, 90 days, and 365 days.
Also read: ChatGPT Predicts Bitcoin (BTC) to Hit $250,000 Post-Halving
When these average returns collectively enter negative territory, the model suggests that the asset has entered an “opportunity zone.” This indicates that it may be undervalued and poised for a rebound.
Conversely, when the average returns are significantly positive, the model suggests that the asset may be in a “danger zone.” This indicates that it may be overvalued and at risk of a correction.
Additionally, it is crucial to keep in mind that the cryptocurrency market is highly volatile and subject to rapid changes in sentiment and market conditions. As such, even altcoins that appear to be in an opportunity zone, according to the Santiment model, may still face challenges and potential downside risks.
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Cryptocurrency: Top 5 Coins To Buy During The Dip
After the largest cryptocurrency, Bitcoin, experienced a decline to $60,800, reaching a 2-week low on Tuesday, the Santiment MVRV Opportunity & Danger Zone Model suggests that certain altcoins have decreased sufficiently, potentially offering an opportunity for mid-term trading returns.
The blockchain analytics platform, Santiment, developed this model. It suggests that an asset enters an “opportunity zone” when its 30-day, 90-day, and 365-day average wallet returns combine to be in negative territory.
Also read: Shiba Inu: Can SHIB Reclaim $0.00004 By March End?
— Santiment (@santimentfeed) March 20, 2024
In the crypto industry, projects with minimal returns compared to the rest of the sector have a higher probability of a more efficient rebound for investors who are willing to “buy the dip” on projects where traders are experiencing the most pain.
Altcoins in the Opportunity Zone
According to the Santiment model, some of the best candidates currently in this opportunity zone include:
- Bounce Token (AUCTION)
- Lido DAO (LDO)
- OMG Network (OMG)
- Storj (STORJ)
- Synthetix (SNX)
Also read: Top Cryptocurrency Analyst Shares 6 Altcoins Set To 6X In 2024
These altcoins have seen their average wallet returns over the past 30, 90, and 365 days collectively enter negative territory. Also, this suggests that they may be poised for a more efficient rebound compared to other projects in the cryptocurrency sector.
Santiment developed the MVRV (Market Value to Realized Value) Opportunity and Danger Zone Model as a tool to assist investors in identifying potential entry and exit points for various cryptocurrencies.
The model takes into account the average returns of wallets holding a particular asset over different time periods. Namely, 30 days, 90 days, and 365 days.
Also read: ChatGPT Predicts Bitcoin (BTC) to Hit $250,000 Post-Halving
When these average returns collectively enter negative territory, the model suggests that the asset has entered an “opportunity zone.” This indicates that it may be undervalued and poised for a rebound.
Conversely, when the average returns are significantly positive, the model suggests that the asset may be in a “danger zone.” This indicates that it may be overvalued and at risk of a correction.
Additionally, it is crucial to keep in mind that the cryptocurrency market is highly volatile and subject to rapid changes in sentiment and market conditions. As such, even altcoins that appear to be in an opportunity zone, according to the Santiment model, may still face challenges and potential downside risks.
Read More