Four altcoins with attractive entry opportunities have been identified by a renowned crypto analytics firm.
Santiment: These 4 altcoins are giving bullish signals
In a recent Twitter analysis, Santiment reported that cryptocurrencies powering the DeFi-focused altcoin projects Aave (AAVE), Compound (COMP), Maker (MKR) and Ren (REN) ecosystems are approaching their lowest levels. The firm details this with a few items:
Recently, AAVE, COMP, MKR and REN have all shown very distinct lows. All of this can be accurately estimated by looking at how many active deposits a crypto generates public address activity.
The ratio of bottom indicators is calculated by dividing active deposit (AD) by daily active address (DAD) – AD/DAD by analytics firm. A bullish trend is indicated by a low ratio, while a bearish trend is indicated by a high ratio. Santiment shares that he expects the DeFi platform to rise due to the low AD/DAD ratio, starting with AAVE:
We can speculate that low AD/DAD ratios indicate good buying chances.
Santiment sees bright future for Compound (COMP)
The second altcoin project that the firm has focused on is Compound (COMP). Based on the AD/DAD ratio, Santiment believes COMP has a bright future. The fact that the cryptocurrency reaches the ATH level at this value is another indicator that supports the optimistic mood, according to the company:
Just a few days ago, Compound’s AD/DAD hit an all-time low. This is a good indicator.
Next up is the native cryptocurrency of the Ren protocol, which allows cryptocurrencies to move on different blockchains. According to the analytics firm, REN had a “bottom jump” last month that could offer a good entry point. Santiment believes that MKR’s volatility will be significantly weaker than Maker’s native token. As for the price forecast, Santiment says that the REN price will accompany the rise, although it is not as strong as the other cryptos on the list:
At the end of January, AD/DAD started to decline. We believe it has the potential to rise even higher, though not as much as other tokens.
Altcoin market painted red
As we have reported as Somanews, the price movements of Bitcoin in the region of 40 thousand dollars are critical for the course of the market. At the time of writing, the last 24-hour losses in the altcoin market are approaching around 5%, accompanied by BTC, which instantly touched $ 39,781.74.