Santiment Signals Short-Term Bullishness for Ethereum and Dogecoin Amid Market Correction

Altcoins Oversold as MVRV Drops Negative

On-chain metrics reveal that seven altcoins, including Dogecoin (DOGE), Uniswap (UNI), and Litecoin (LTC), have entered negative territory in their MVRV (market-value-to-realized-value) metric. This suggests that these coins are currently oversold and undervalued.

Positive Signal for Altcoins

Despite the recent market downturn, altcoin charts indicate a potential buy signal. Santiment, a reputable crypto analytics firm, has released an updated list of large-cap altcoins that could rally in the short term.

Altcoins with Negative MVRV

The platform highlights that the MVRV metric for seven altcoins has dropped below zero. This indicates an oversold and undervalued condition. Santiment notes, "The lower a coin's 30-day MVRV is, the less risk there is in entering or adding to a position for the short term."

Dogecoin Offers Best Risk-Reward

According to Santiment, Dogecoin (DOGE) has the most favorable risk-reward scenario with an MVRV of -19.7%. Recent price drops have led to significant liquidations.

Other Oversold Altcoins

Other altcoins with negative MVRV include:

• Uniswap (UNI): -16.3%
• Litecoin (LTC): -15%
• Ethereum (ETH): -13.2%
• Chainlink (LINK): -11.1%
• XRP: -10.1%
• Cardano (ADA): -9.9%

Bitcoin MVRV Drops Negative

Bitcoin's MVRV ratio has also dipped below zero, currently hovering around -9.65%. This is the first time it has entered negative territory since March 2023.

Bulls Cautiously Watching Bitcoin

Analysts are monitoring Bitcoin's MVRV, hoping it will recover above its one-year moving average to initiate an uptrend. Historically, a prolonged period below zero MVRV has signaled a bull run, but this may not be the case for Bitcoin currently.

Market Uncertainty

The cryptocurrency market is experiencing weakness, creating a buying opportunity or a potential precursor to further price declines. Market direction depends on other metrics' analysis. Consolidation or a short-term rebound is possible, while a prolonged downtrend or bear market is unlikely at this stage.