The recent cryptocurrency market downturn has seen the prices of major cryptocurrencies including Bitcoin, Ethereum, XRP, Dogecoin, and Cardano drop significantly. A little-known metric, however, suggests a short-term bounce is due.
That’s according to data shared by on-chain analytics firm Santiment, which notes that the lower a cryptocurrency’s 30-day Market Value to Realized Value (MVRV) ratio, a metric used to gauge market sentiment and predict future price movements, the “higher the likelihood we see a short-term bounce.”
The 30-day MVRV ratio compares the current price of an asset with the average price at which it was acquired in the last month. A lower MVRV suggests the asset is undervalued, potentially indicating a price upswing in the near future.
According to Santiment’s data, Bitcoin and Ethereum currently sit at -4.0% and -4.3% on the 30-day MVRV scale,…
