Santiment analysis indicates XRP and Uniswap are entering an opportunity zone

Santiment analysis indicates XRP and Uniswap are entering an opportunity zone

By Sam Grant - min read
  • On-chain data shows several altcoins could be set for an upturn as they approach historical opportunity zones
  • Uniswap has recently hit an all-time negative low in MVRV, and XRP is on an eight-month low in this metric

Blockchain analytics firm Santiment today reviewed the top altcoins that investors should look to after the sour January they have experienced with the markets.

Over the course of the month, the markets have neither spared short-term nor mid-term investors, with the majority seeing trading losses at differing degrees.

Advising traders to jump on the opportunity to buy low while others sulk, Santiment reviewed MVRVs of crypto assets and came up with a list of 150 assets that are prime for investment. The analytics firm justified the selection, noting that the tokens show "good justification for buys."

Market Value to Realised Value (MVRV) is a metric that indicates the average loss or profit of a token's coins in circulation at immediate price. This ratio helps define market profitability relative to a fair value, thus indicating to investors when a buy window opens.

Santiment's analysis averaged the MVRVs of several tokens since last November and found that crypto assets including XRP, UniSwap, Compound and Loopring have recently reached or neared all-time average lows in MVRVs.

The analysis firm explained that Uniswap's $UNI is at all-time low MVRV figures, having recently corrected to trade below $10 – the first time in more than a year. The note said that the token, with a record high of $44.97, is unlikely to visit below the $10 price point once again. Thus, the firm submitted that UNI would be a great beneficiary should the markets see an upturn.

At the time of writing, UNI is exchanging hands at $11.10 against the dollar, up 0.03% in the last 24 hours.

Santiment also observed that XRP is a good candidate for investors to look at as they seek to fight against trading losses. XRP is at an eight-month low in average MVRV and currently trades at $0.58, far below the record high set at the start of 2018 – $3.84.

Santiment's note mentioned that XRP was last in a positive zone MVRV mid last month, meaning a price upswing of the token would be a welcome gift to the investors.

Notably, XRP is ranked 8th in market cap, and despite the token flailing in recent days, the parent firm Ripple is stable, according to CEO Brad Garlinghouse. The recent Q4 report revealed a 46% quarter-over-quarter jump in sales revenue, primarily attributed to the firm's On-Demand Liquidity (ODL) product.