XRP was last positive in mid-December, Santiment says as they predict a potential upswing for the cryptocurrency.
The MVRV ratios for other altcoins like Aave, Uniswap and Compound point to a possible upswing.
Hunting for bargain buys? Looking at the market value to realized value (MVRV) ratio can be a good starting point, Santiment says in its weekly outlook.
“MVRV is a great metric to gauge how deep traders are into pain or euphoria zones,” the firm wrote.
Considering “how much pain” traders have endured over the short-term to long-term timeframes helps to get a clearer picture of opportunities that may lie.
Analysts at the platform have zeroed in on some of the coins likely to be excellent buys.
6 altcoins that could offer a great 'buy the dip' opportunity
Santiment, an on-chain analytics platform tracking the technical and fundamental outlook of most cryptocurrencies, says the above altcoins are among those likely to offer a buying opportunity.
An analysis of the coins, the platform points out, shows they are underbought at the moment and could therefore be an opportunity to those seeking a fresh “buy low” entry point.
Santiment says XRP’s MVRV is at “its most negative average” level since the end of June last year. According to the firm, XRP last traded in the green on this metric in mid-December and is thus one of the altcoins likely to see a major upswing.
Santiment is also positive about Uniswap (UNI), noting in its report that the 30th ranked crypto asset (by market cap) is also posting an average MVRV at its lowest level ever.
The UNI/USD pair is up 6% on the day and Santiment projects a new rally for the markets could see this altcoin recover to recent highs.
Aave (AAVE), Compound (COMP) The Graph (GRT) and Loopring (LRC)
Santiment says traders could reap big from these four other altcoins, which the platform notes have an outlook similar to XRP and Uniswap. The tokens are Aave (AAVE), Compound (COMP), The Graph (GRT), and Loopring (LRC).
Santiment’s average MVRV data shows all these altcoins are in the negative, sitting near all-time lows.
Altcoins bouncing higher
Most cryptocurrencies had a January to forget, with monthly losses reaching into double digits as sell-off pressure intensified across crypto and traditional financial markets.
Several crypto assets have however bounced higher over the past 24 hours as they recoup some of the losses suffered in January. Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Terra (LUNA) are all seeing double-digit gains on the day, while Bitcoin has jumped 7% as bulls eye a break above $39,000.
XRP Network (XRP), Uniswap (UNI) and Aave (AAVE) are also up, with XRP and UNI both 6% in the green and AAVE 11.7% higher. Gains for these coins could see them break above key barriers as the broader market catches a breather.