- The MVRV metric shows that most altcoins have not been bought and there is a buying opportunity.
- However, new leg downs can push some of the tokens into the danger zone.
- Cryptocurrency prices are falling along with stock weakness.
At the time of writing, the total cryptocurrency market cap is down 1.7% as the broader cryptocurrency market is losing even more.
Bitcoin’s price fell below $21,700 again, Ethereum traded to a low of $1,530 on Thursday, and major crypto assets continued the weakness highlighted on March 8.
Santiment data shows ‘when to buy altcoins’
Many altcoins are flashing buy signals due to the “heavy bleeding” witnessed across crypto markets this week, according to analysts at market research firm Santiment. Many of the altcoins are suggesting an unbought outlook as traders perceive losses, the firm said. Tweet Posted early Thursday.
One indicator of current price levels as an opportunistic buying zone is the Market Value Realized Value (MVRV) ratio. Prices may still fall, but Santiment suggests that most altcoins are in an opportunity zone where prices are likely to rise.
Of note, however, the market may still take a new tread and push some coins into the danger zone.
“If you were waiting for the time to buy altcoins while there was blood in the streets, the MVRV model shows that the time has come.Of course, prices could fall further, but this is the most cryptocurrency in the opportunity zone since early January.‘ Santiment tweeted.
🤠📊 Those who were waiting for the time to purchase #Altcoin When there’s blood in the streets, the MVRV model shows that the time has come.Of course, the price could drop further, but this is the most #Crypt The asset has been in the Opportunity Zone since early January. pic.twitter.com/LoM4ooiGUU
— Santiment (@santimentfeed) March 9, 2023
As CoinJournal reported earlier this week, more negative news surrounding cryptocurrency bank Silvergate and Fed Chairman Jerome Powell’s economic commentary this week were followed by a slump.
In particular, the Fed’s hawkish outlook has unsettled markets, which was reflected in Wednesday’s sell-off in stocks.