Crypto Market Analysis: Bitcoin, Ethereum, and Other Major Cryptocurrencies Show Signs of Being Undervalued
Bitcoin, Ethereum, XRP, Dogecoin, Toncoin, and Cardano are seen as undervalued by analysts, who predict a possible price bounce soon.
Market Stabilization with Modest Gains
The crypto market has shown signs of stabilization. Over the past 24 hours, the market capitalization increased by 0.6%, reaching $2.49 trillion, as reported by CoinGecko.
Analysts' Predictions
According to data from Santiment, a well-known on-chain intelligence tracker, several top 10 cryptocurrencies by market capitalization may be undervalued. This undervaluation could lead to a short-term price bounce.
Key Undervalued Cryptocurrencies
The following cryptocurrencies are highlighted as undervalued based on the Market Value to Realized Value (MVRV) metric for the past 30 days:
- Bitcoin (BTC): -4.0% (mildly bullish)
- Ethereum (ETH): -4.3% (mildly bullish)
- Ripple (XRP): -3.5% (mildly bullish)
- Dogecoin (DOGE): -16.7% (very bullish)
- Toncoin (TON): -0.6% (neutral)
- Cardano (ADA): -12.6% (very bullish)
Understanding the MVRV Metric
The MVRV metric is used to understand aggregate investor behaviors and how prices move relative to their cost basis. When the MVRV turns negative on a given timeframe, it indicates that the asset is undervalued on average. Lower 30-day MVRV values can be a signal for potential short-term price increases.
Current Market Overview
As of Wednesday:
- Bitcoin is trading above a key support level at $65,000.
- Ethereum is stable above $3,500.
- Other cryptocurrencies in the top 10 have shown attempts to recover within the last 24 hours, though most still show negative returns over the last seven days.
Conclusion
Given the MVRV analysis, analysts from Santiment believe that these undervalued cryptocurrencies could see a short-term price bounce, making this an opportunistic time for interested investors to monitor the market closely.
Key Takeaways:
- Crypto market gains by 0.6% to reach $2.49 trillion.
- Analysts at Santiment see Bitcoin, Ethereum, XRP, Dogecoin, Toncoin, and Cardano as undervalued.
- MVRV metric signals potential short-term bounce in prices for these assets.
