Santiment Predicts Short-Term Price Movements Based on 30-Day MVRV Ratios of Major Cryptocurrencies

On 19 June 2024, Santiment, a renowned crypto analytics firm, posted on social media platform X about the 30-day Market Value to Realized Value (MVRV)

Santiment, a renowned crypto analytics firm, took to social media platform X on 19 June 2024 to share the 30-day Market Value to Realized Value (MVRV) ratios of several major cryptocurrencies. The tweet, accompanied by a detailed chart, highlighted the current undervaluation in the crypto market and predicted potential short-term price movements.

The full tweet reads:

30-day MVRV ratios for major crypto assets

The lower a cryptocurrency’s 30-day MVRV is, the higher the likelihood we see a short-term bounce

Bitcoin: -4.0% (Mild Bullish)

Ethereum: -4.3% (Mild Bullish)

XRP: -3.5% (Mild Bullish)

Dogecoin: -16.7% (Very Bullish)

Toncoin: -0.6% (Neutral)

Cardano: -12.6% (Very Bullish) pic.twitter.com/zHGg4t3qo1

What is MVRV Ratio?

The Market Value to Realized Value (MVRV) ratio is a metric used in cryptocurrency analysis to assess the profitability and market sentiment of an asset. It is calculated by dividing the market capitalization (market value) by the realized capitalization (realized value). The realized value is the sum of the values at which each coin was last moved (i.e., bought or sold).

Understanding MVRV Ratio

The MVRV ratio thus indicates how much the current price exceeds or falls below the average purchase price of the coins.

Key Insights from Santiment’s Post

Santiment’s tweet provided the 30-day MVRV ratios for six major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), XRP, Dogecoin (DOGE), Toncoin (TON), and Cardano (ADA). Here’s what the MVRV ratios indicate for each:

Detailed Explanation of the Chart

The accompanying chart from Santiment provides a visual representation of these MVRV ratios along with the price trends of the respective cryptocurrencies. Key elements of the chart include:

What Does This Mean for Investors?

According to Santiment, the lower a cryptocurrency’s 30-day MVRV ratio, the higher the likelihood of a short-term price bounce. This analysis suggests that cryptocurrencies like Dogecoin and Cardano, with significantly negative MVRV ratios, have a high potential for price increases. In contrast, Bitcoin, Ethereum, and XRP show mild bullish potential, while Toncoin remains neutral.

Investors should use this information to gauge market sentiment and make informed decisions. However, it’s important to remember that the cryptocurrency market is extremely volatile and risky, and these predictions are based on historical data and current market conditions.

News source：https://www.kdj.com/cryptocurrencies-news/articles/santiment-predicts-shortterm-price-movements-based-day-mvrv-ratios-major-cryptocurrencies.html

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