Santiment: This Altcoin Is In The Opportunity Zone! Here’s Why

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While Ethereum left the market up 10% positive, on-chain analytics firm Santiment has released a series of interesting on-chain metrics that show the leading altcoin project moving in the “opportunity zone”. Let’s take a quick look at what Santiment has to say about Ethereum (ETH)…

MVRV indicator points to buyer pressure on Ethereum

The buy or sell zone in a cryptocurrency can be determined using the MVRV indicator. With the help of the MVRV indicator, traders can determine whether the price of an altcoin is overbought. Using the MVRV indicator in their latest Ethereum analysis, Santiment says:

Ethereum’s price is up +9.2% in just 3 hours, and the 30-day MVRV metrics were showing massive FUD among ETH traders. When this measurement drops below -10 to -15%, prices usually start to turn positive.

While every transaction or decision in the cryptocurrency market is risky, indicators like MVRV show the current degree of true trend. When Ethereum whales sell their ETH more aggressively, the MVRV rate tends to drop faster, determining if there is room for recovery. So, is Ethereum now in the zone of opportunity? Let’s end with the answer to this question.

Is the leading altcoin in the opportunity zone?

According to the MVRV indicator, which is currently moving at -10% on Ethereum, the leading altcoin is oversold by major investors and is moving into the “opportunity zone”, positioning at a local bottom according to the market history. According to Arman Shirinyan, whose analysis we shared as Somanews, while this ratio can give traders a clue for short-term trend reversal, the indicator is not designed to analyze the long-term situation of the market. The MVRV indicator had reached the lowest levels of the last 4 months before the 10% increase. The last period when the MVRV rate was close to -10% was at the beginning of December.